ISM Manufacturing Report on Business: October 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to weaken in October with assessments of many measures slowing.

At 50.8 the purchasing manager’s composite index (PMI) declined 1.55% since September sliding 10.72% below the level seen a year earlier.

Some respondents indicated sluggish domestic sales, uncertain prices, slowing trends and headwinds coming from customers unwillingness to commit to purchases:

"Starting to see some deflation on raw materials." (Chemical Products)

"Overall industry volumes remain flat vs. previous month. Uncertainty in supply chain is increasing due to lower volumes vs. historical." (Electrical Equipment, Appliances & Components)

"International: contraction in demand for our products is driving mitigation of excess material on order. Contract manufacturers are adjusting their resources accordingly." (Machinery)

"Business is slowing — not crashing — but uncertainty and caution is the order of the day." (Plastics & Rubber Products)

"Retail branded business is slower than expected due to consumers continuing to move to private label- and store-brand products for price advantage. Raw material supplies are in good shape, but prices are staying stubbornly higher than expected." (Food, Beverage & Tobacco Products)

ISM Manufacturing Report on Business: July 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to weaken in July with assessments of most measures slowing.

At 50.9 the purchasing manager’s composite index (PMI) declined a whopping 7.96% since June and slid 7.62% below the level seen a year earlier.

Some respondents indicated sluggish domestic sales, slowing trends and hesitation coming as a result of the debt ceiling debate:

"Market conditions — Europe weak, U.S. soft, Asia strong." (Computer & Electronic Products)

"Export sales very strong, while domestic sales are sluggish." (Paper Products)

"The looming debt ceiling has government agencies backing away from spending. Forecasting a slowdown in demand in the short term." (Transportation Equipment)

"Generally seeing a slowdown, which is typical this time of year. Hopeful that this is seasonal only." (Plastics & Rubber Products)

"Most industrial customers seem to be sustaining their business. Export orders continue to remain strong. Price pressures persist, especially with commodity materials." (Chemical Products)

ISM Manufacturing Report on Business: May 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to expand in May though at a sharply slower pace than in April and suggested that all measures saw a slowdown.

At 53.5 the purchasing manager’s composite index (PMI) declined a whopping 11.42% since April and declined 7.44% below the level seen a year earlier.

Some respondents indicated increasing pressure on prices as higher energy prices stocked inflationary forces as well as poor results coming from bad weather:

"Chemical prices are under increasing cost pressure, driven by feedstock and transportation costs." (Chemical Products)

"Demand remains strong; however, inflation is evident everywhere in virtually every material purchased." (Paper Products)

"Bad weather is impacting retail business." (Printing & Related Support Activities)

"Business is still strong, but we are more aware of a possible softening than previously." (Machinery)

ISM Manufacturing Report on Business: April 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to expand in April though at a slightly slower pace than in March and an indication that most measures are in expansion.

At 60.4 the purchasing manager’s composite index (PMI) declined 1.31% since March but remained 1.34% above the level seen a year earlier and still sits very near the highest level seen in over 25 years.

Some respondents indicated increasing pressure on prices as higher energy prices stocked inflationary forces:

"Rapidly rising raw material costs putting extreme pressure on profits." (Food, Beverage & Tobacco Products)

"Plastic resin product prices are climbing so fast that [suppliers] are attempting to increase prices on orders already accepted but not [yet] delivered." (Chemical Products)

"Customers are rebuilding safety stock levels of inventory, and also trying to buy ahead of material price increases." (Plastics & Rubber Products)

ISM Manufacturing Report on Business: February 2011

Today, the Institute for Supply Management released their latest Report on Business for the manufacturing sector indicating that economic activity continued to expand in February with an increase from January and an indication that most measures are in expansion.

At 61.4 the purchasing manager’s composite index (PMI) increased 0.99% since January and 7.53% above the level seen a year earlier reaching the highest value seen in over 25 years.