November Manufacturing Report, PMI at 56.6%
Press release from the issuing company
Thursday, December 2nd, 2010
Economic activity in the manufacturing sector expanded in November for the 16th consecutive month, and the overall economy grew for the 19th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector. Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continues to benefit from the recovery in autos, but those industries reliant upon housing continue to struggle."
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, 10 are reporting growth in November, in the following order: Computer & Electronic Products; Petroleum & Coal Products; Apparel, Leather & Allied Products; Machinery; Fabricated Metal Products; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Chemical Products; and Primary Metals. The six industries reporting contraction in November — listed in order — are: Printing & Related Support Activities; Furniture & Related Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Paper Products; and Miscellaneous Manufacturing.
WHAT RESPONDENTS ARE SAYING ...
"Business continues to improve; however, rising material prices are eroding margin. Increases to the consumer are inevitable in early Q1 2011." (Paper Products)
"International markets expanding rapidly. Domestic market is slowly rebounding." (Transportation Equipment)
"We're starting to see capacity at suppliers become an issue." (Machinery)
"Capital projects are being released, which is improving our sales." (Computer & Electronic Products)
"We are seeing increases in chemical prices that seem to be driven by supply/demand imbalance." (Chemical Products)
