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Home » Manufacturing Continues to Expand in December

Manufacturing Continues to Expand in December

By    MDM  Staff 
January 4, 2010
More about:  Economic Trends
Purchasing Managers Index at 55.9%, the highest since April 2006.
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The manufacturing sector expanded in December for the fifth consecutive month, according to the latest Manufacturing ISM Report on Business. The report, issued by the Institute for Supply Management each month, showed the PMI rising to 55.9%, its highest reading since April 2006. A reading above 50% indicates expansion.

In December, New Orders and Production indexes were above 60%. The report indicates the sector may be benefiting from excessive destocking as indicated by the recent performance of the Customers' Inventories Index. Customers' inventories have been 'too low' for nine consecutive months, according to ISM, and this month's index is the lowest reading since the inception of the index in January 1997.

Seven industries in the report remained in decline in December.
 
In December, nine of the 18 manufacturing industries reported growth. The industries are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Machinery; Electrical Equipment, Appliances & Components; Transportation Equipment; Paper Products; Furniture & Related Products; and Food, Beverage & Tobacco Products.
 
The seven industries reporting contraction in December are: Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Chemical Products; Printing & Related Support Activities; and Fabricated Metal Products.

More details at http://www.ism.ws/ISMReport/MfgROB.cfm.

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