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The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Managementﾙ Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia-Pacific Corporation. ''The manufacturing sector enjoyed its fourth consecutive month of growth as new orders continue to lead the recovery. Production made a sharp swing upward during October, signifying growth for the sixth consecutive month.''
ISM's Backlog of Orders Index indicates that order backlogs improved again in October. However, manufacturing Employment continued to decline in October as the index remained below the breakeven point (50%) for the 37th consecutive month. ISM's Prices Index indicates that manufacturers experienced higher prices for the 20th consecutive month. New Export Orders grew in October for the 22nd consecutive month, while October's Imports Index grew for the 12th consecutive month.
Comments from purchasing and supply managers seem to be lagging the data. The indexes indicate significant improvement, but the purchasing and supply managers' comments do not reflect this trend. It appears that some industries are not yet experiencing the upturn.
ISM's PMI is 57% in October, an increase of 3.3%age points when compared to 53.7 in September. ISM's New Orders Index rose 3.9%age points from 60.4% in September to 64.3% in October. ISM's Production Index rose 5.3%age points from 57.3% in September to 62.6% in October. The ISM Employment Index is at 47.7% for October, an increase of 2%age points when compared to the 45.7% reported in September.
ISM's Supplier Deliveries Index registered 53.9%, 1.5%age points higher than September's 52.4%. ISM's Inventories Index rose to 44.5% in October from the 42.7% reported in September. ISM's Customers' Inventories Index for October is at 39%, a decrease of 5.5%age points compared to the September reading of 44.5%. ISM's Prices Index in October is 58.5%, 2.5%age points higher than the 56% reported in September.
ISM's Backlog of Orders Index increased 1%age point, registering 53.5% in October compared to 52.5% in September. ISM's New Export Orders Index registered 59.6%, up 6.7%age points from September's 52.9%, while ISM's Imports Index declined 3.4%age points to 57.3% in October from 60.7% in September.
'This is the best report that we have seen in quite some time in terms of the overall strength of manufacturing. The picture continues to improve, and it appears that manufacturing will finish 2003 on a very positive note, assuming the recent trend continues,' said Ore.
Of the 20 industries in the manufacturing sector, 14 industries reported growth: Leather; Instruments & Photographic Equipment; Food; Glass, Stone, & Aggregate; Tobacco; Paper; Fabricated Metals; Industrial & Commercial Equipment & Computers; Rubber & Plastic Products; Chemicals; Electronic Components & Equipment; Primary Metals; Furniture; and Transportation & Equipment.
'Plywood is the only commodity reported in short supply. Commodities reported up in price are: Beef; Copper; Crude Oil; Lumber; Natural Gas; Nickel; Plastic Resin; Poly Bags; Polyethylene Film; Stainless Steel; Steel; and Sulfuric Acid. The commodities reported down in price are Caustic Soda; Corrugated; Gasoline and Natural Gas,' Ore stated.