Economic activity in the manufacturing sector expanded in December for the fifth consecutive month, and the overall economy grew for the eighth consecutive month, according to supply executives in the latest Manufacturing Institute for Supply Management Report On Business®.
The report was issued today by the Institute for Supply Management Manufacturing Business Survey Committee. The manufacturing sector grew for the fifth consecutive month in December as the PMI rose to 55.9 percent, its highest reading since April 2006 when it registered 56 percent. This month’s report is strong as both the new orders and production indices are above 60 percent. The sector may be benefiting from an excessive destocking cycle as indicated by the recent performance of the Customers’ Inventories Index. Customers’ inventories have been low for nine consecutive months, and this December’s index is the lowest reading since the inception of the index in January 1997. Overall, the recovery in manufacturing is continuing, but there are still some industries mired in the downturn as evidenced by the seven industries still in decline: Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Plastics and Rubber Products; Chemical Products; Printing and Related Support Activities; and Fabricated Metal Products.
Pete Nofel has 30+ years of journalism experience and has held the position of Editor-in-Chief of several magazines covering the manufacturing industry. His most current thoughts and coverage of the industry can be found at www.machiningbusinessnews.com.