ISM: Manufacturing PMI Drops 2.4 Points - Modern Distribution Management

ISM: Manufacturing PMI Drops 2.4 Points

Economic activity in the manufacturing sector grew in December, though the PMI dropped 2.4 points from November.
The increase was above investor expectations of a 0.2% gain, according to a survey by The Wall Street Journal.

Economic activity in the manufacturing sector grew in December, with the overall economy seeing a 19th consecutive month of growth, according to supply executives in the latest Manufacturing ISM Report on Business.

The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the ISM Manufacturing Business Survey Committee.

The December Manufacturing PMI registered 58.7%, a decrease of 2.4 percentage points from the November reading of 61.1%.

The New Orders Index registered 60.4%, down 1.1 percentage points compared to the November reading of 61.5%.

The Production Index registered 59.2%, a decrease of 2.3 percentage points compared to the November reading of 61.5%.

The Prices Index registered 68.2%, down 14.2 percentage points compared to the November figure of 82.4%.

The Backlog of Orders Index registered 62.8%, 0.9 percentage point higher than the November reading of 61.9%.

The Employment Index registered 54.2%, 0.9 percentage point higher compared to the November reading of 53.3%.

The Supplier Deliveries Index registered 64.9%, down 7.3 percentage points from the November figure of 72.2%.

The Inventories Index registered 54.7%, 2.1 percentage points lower than the November reading of 56.8%.

The New Export Orders Index registered 53.6%, a decrease of 0.4 percentage point compared to the November reading of 54%.

The Imports Index registered 53.8%, a 1.2-percentage point increase from the November reading of 52.6%.

“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with indications of improvements in labor resources and supplier delivery performance,” Fiore said. “Shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products continue to plague reliable consumption. Coronavirus pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, employee turnover and overseas supply chain problems — continue to impact manufacturing. However, panel sentiment remains strongly optimistic, with six positive growth comments for every cautious comment, down slightly from November. ISM’s Semiannual Economic Forecast, released in December, indicates a strong 2022 performance expectation in terms of revenue growth and profitability.”

Fiore said all of the six biggest manufacturing industries — Chemical Products; Fabricated Metal Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Transportation Equipment; and Petroleum & Coal Products, in that order — registered “moderate-to-strong growth” in December.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.