DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of April 2010.
TEMPE, Ariz. — (BUSINESS WIRE) — May 3, 2010 — Economic activity in the manufacturing sector expanded in April for the ninth consecutive month, and the overall economy grew for the 12th 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 for the ninth consecutive month during April. The rate of growth as indicated by the PMI is the fastest since June 2004 when the index hit 60.5 percent. Manufacturers continue to see extraordinary strength in new orders, as the New Orders Index has averaged 61.6 percent for the past 10 months. The signs for employment in the sector continue to improve as the Employment Index registered its fifth consecutive month of growth. Overall, the recovery in manufacturing continues quite strong, and the signs are positive for continued growth.”
PERFORMANCE BY INDUSTRY
Seventeen of the 18 manufacturing industries are reporting growth in April, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Wood Products; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Transportation Equipment; Machinery; Computer & Electronic Products; Primary Metals; Furniture & Related Products; Chemical Products; Printing & Related Support Activities; Paper Products; and Food, Beverage & Tobacco Products. No industries are reporting contraction in April.
WHAT RESPONDENTS ARE SAYING …
- “Finances continue to be tight, and we are decreasing safety stock levels to reduce inventory.” (Electrical Equipment, Appliances & Components)
- “Business conditions continue to improve. Actual sales exceeded budget for the third straight month.” (Food, Beverage & Tobacco Products)
- “Demand from automotive manufacturers has continued to improve month over month.” (Fabricated Metal Products)
- “We are finally seeing a turnaround.” (Primary Metals)
- “Upward price pressure still evident.” (Chemical Products)
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MANUFACTURING AT A GLANCE
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| Index |
Series
|
Series
|
Percentage
|
Direction |
Rate
|
Trend(a)
|
||||||
| PMI | 60.4 | 59.6 | +0.8 | Growing | Faster | 9 | ||||||
| New Orders | 65.7 | 61.5 | +4.2 | Growing | Faster | 10 | ||||||
| Production | 66.9 | 61.1 | +5.8 | Growing | Faster | 11 | ||||||
| Employment | 58.5 | 55.1 | +3.4 | Growing | Faster | 5 | ||||||
| Supplier Deliveries | 61.3 | 64.9 | -3.6 | Slowing | Slower | 11 | ||||||
| Inventories | 49.4 | 55.3 | -5.9 | Contracting | From Growing | 1 | ||||||
| Customers’ Inventories | 33.0 | 39.0 | -6.0 | Too Low | Faster | 13 | ||||||
| Prices | 78.0 | 75.0 | +3.0 | Increasing | Faster | 10 | ||||||
| Backlog of Orders | 57.5 | 58.0 | -0.5 | Growing | Slower | 4 | ||||||
| Exports | 61.0 | 61.5 | -0.5 | Growing | Slower | 10 | ||||||
| Imports | 58.0 | 57.0 | +1.0 | Growing | Faster | 8 | ||||||
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OVERALL ECONOMY
Manufacturing Sector |
Growing | Faster | 12 | |||||||||
| Growing | Faster | 9 | ||||||||||
