December activity among manufacturer and distributor members of the Industrial Supply Association remained strong, but at a slower pace than the previous month, according the latest ISA Economic Indicators Report.
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The report, calculated similarly to the ISM’s Purchasing Managers Index (PMI), showed manufacturer activity at 60.2 percent, down from the November index of 65.3 percent. The distributor index was 57.1 percent, down from the November index of 61.1 percent. For each index, a reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.
\”On the whole it was a good year for the industrial supply industry,\” said Jack Schron, ISA president and president of Jergens Inc., Cleveland, Ohio. \”Eighty-nine percent of manufacturers and 90 percent of distributors have reported higher year-to-date sales. New orders and sales revenues for manufacturers were reported higher in December 2011 vs. December 2010 for more than 75 percent of manufacturers and 85 percent of distributors.\”
John Buckley, ISA executive vice president, added that while \”overall activity has been very positive for the year, the fact that the index fell below 50 for the last few months of the year in the areas of business activity and new orders for both manufacturers and distributors gives us some reason for concern heading into 2012.\”
To access the complete report, click here.
