The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 117th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing expanded in January, as the PMI registered 56.6 percent, an increase of 2.3 percentage points from the December reading of 54.3 percent. This indicates growth in manufacturing for the 29th consecutive month.
ISM’s New Orders Index registered 58.2 percent in January, which is an increase of 6.9 percentage points when compared to the 51.3 percent reported for December, indicating growth in manufacturing sector's new orders for the 37th consecutive month.
ISM’s Production Index registered 60.5 percent in January, which is an increase of 6.4 percentage points when compared to the 54.1 percent reported for December, indicating growth in production for the 29th consecutive month.
ISM’s Employment Index registered 55.5 percent in January, a decrease of 0.5 percentage point when compared to the December reading of 56 percent. This indicates growth in employment in January for the 28th consecutive month.
The delivery performance of suppliers to manufacturing organizations slowed in January, as the Supplier Deliveries Index registered 56.2 percent. This is 2.8 percentage points lower than the 59 percent reported for December. This is the 35th straight month of slowing supplier deliveries,
The Inventories Index registered 52.8 percent in January, an increase of 1.6 percentage points from the 51.2 percent reported for December. Inventories expanded for the 13th consecutive month, at a faster rate than the previous month and reflect growth due to improved supplier delivery performance.
ISM’s Backlog of Orders Index registered 50.3 percent in January, which is 0.3 percentage point higher than the 50 percent reported in December, indicating order backlogs grew slightly for the month.
Of the 18 manufacturing industries, 14 reported growth in January, in the following order: Textile Mills; Computer & Electronic Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Furniture & Related Products; Printing & Related Support Activities; Primary Metals; Chemical Products; Transportation Equipment; Machinery; Fabricated Metal Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. The only industry reporting contraction in January is Nonmetallic Mineral Products.