Economic activity in the manufacturing sector expanded in July for the second consecutive month, and the overall economy grew for the 50th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 55.4 percent, an increase of 4.5 percentage points from June’s reading of 50.9 percent. June’s PMI™ reading, the highest of the year, indicates expansion in the manufacturing sector for the second consecutive month. The New Orders Index increased in July by 6.4 percentage points to 58.3 percent, and the Production Index increased by 11.6 percentage points to 65 percent. The Employment Index registered 54.4 percent, an increase of 5.7 percentage points compared to June’s reading of 48.7 percent. The Prices Index registered 49 percent, decreasing 3.5 percentage points from June, indicating that overall raw materials prices decreased from last month. Comments from the panel generally indicate stable demand and slowly improving business conditions.”
Of the 18 manufacturing industries, 13 are reporting growth in July in the following order: Furniture & Related Products; Textile Mills; Printing & Related Support Activities; Paper Products; Wood Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Food, Beverage & Tobacco Products; Primary Metals; Transportation Equipment; Chemical Products; and Fabricated Metal Products. The four industries reporting contraction in July are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Machinery; and Miscellaneous Manufacturing.
What respondents are saying:
- “Business conditions remain stable, possibly improving somewhat in future months.” (Miscellaneous Manufacturing)
- “Housing market continues to improve, leading to increased demand in product.” (Electrical Equipment, Appliances & Components)
- “Overall conditions remain steady and slightly above prior year.” (Paper Products)
- “Sales are holding steady. Business is good.” (Furniture & Related Products)
- “Business is slow compared to previous years.” (Computer & Electronic Products)
- “First half [of 2013] is better than last year — steady, slow improvement.” (Printing & Related Support Activities)
- “Leading indicators continue to show stagnant-to-gradual improvement, and sales across the board continue to be flat.” (Machinery)
- “Economy continues to be relatively flat. Growth in China is holding. Europe staying at a low level, and U.S. just flat.” (Transportation Equipment)
- “We see gluten-free industry to be strong and it continues to grow. We also see the need for capacity in blending operations.” (Food, Beverage & Tobacco Products)
- “Business remains flat. Looking for some seasonal bump as we come to the beginning of our ‘busy’ time.” (Chemical Products)