December 2021 Manufacturing ISM Report On Business Shows New Orders and Production Have Grown for 19 Consecutive Months

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 grew in December, with the overall economy achieving a 19th consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The Manufacturing PMI continued to indicate strong sector expansion in December, as the Manufacturing PMI registered 58.7 percent, 2.4 percentage points lower than the November reading of 61.1 percent.

ISM’s New Orders Index registered 60.4 percent in December, a decrease of 1.1 percentage points compared to the 61.5 percent reported in November. This indicates that new orders grew for the 19th consecutive month.

The Production Index registered 59.2 percent in December, 2.3 percentage points lower than the November reading of 61.5 percent, indicating growth for the 19th consecutive month.

ISM’s Employment Index registered 54.2 percent in December, 0.9 percentage point above the November reading of 53.3 percent, thus reporting a fourth consecutive month of expansion.

The delivery performance of suppliers to manufacturing organizations was slower in December, as the Supplier Deliveries Index registered 64.9 percent, 7.3 percentage points lower than the 72.2 percent reported in November.

The Inventories Index registered 54.7 percent in December, 2.1 percentage points lower than the 56.8 percent reported for November showing manufacturing inventories continued to expand but at lower levels.

ISM’s Backlog of Orders Index registered 62.8 percent in December, a 0.9-percentage point increase compared to the 61.9 percent reported in November, indicating order backlogs expanded for the 18th straight month.

The 15 manufacturing industries reporting growth in December — in the following order — are: Apparel, Leather & Allied Products; Furniture & Related Products; Textile Mills; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Chemical Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Transportation Equipment; Primary Metals; and Petroleum & Coal Products. The three industries reporting a decrease in December compared to November are: Wood Products; Printing & Related Support Activities; and Paper Products.