FEATURED STORY

Manufacturing Growth Continues; 2010 Outlook Positive

Manufacturing expanded for a fifth straight month in December, with continued growth projected for 2010, says the Institute for Supply Management.

Economic activity in the manufacturing sector expanded in December 2009 for the fifth consecutive month, and the overall economy grew for the eighth consecutive month, say the nation’s supply executives in the latest Manufacturing ISM “Report On Business,” issued Jan. 4 by the Institute for Supply Management (ISM, www.ism.ws).

The report on December manufacturing expansion comes on the heels of a semiannual ISM forecast released on Dec. 8, 2009, that projects a positive scenario for manufacturing in 2010. In that report, the ISM said that 60 percent of survey respondents expect revenues to be greater in 2010 than in 2009. The panel of purchasing and supply executives expects a 5.7 percent net increase in overall revenues for 2010, compared to a 10.7 percent decrease reported for 2009.

Today’s report on December 2009 results revealed an increase in the ISM’s purchasing managers index (PMI) last month. “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,” said Norbert J. Ore, chair of the ISM’s Manufacturing Business Survey Committee.

Inventory adjustments

“This month's report is quite strong as both the New Orders and Production Indexes are above 60 percent,” Ore continued. “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 'too low' for nine consecutive months, and this month'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."

In December, nine of the 18 manufacturing industries reported growth. The industries—listed in order—are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Machinery; Electrical Equipment, Appliances & Components; Transportation Equipment; Paper Products; Furniture & Related Products... Read more

WEB EXCLUSIVES

ANNOUNCEMENT

ATX West

See the world’s leading automation suppliers showcase the products and technologies for lean manufacturing, cost reduction, enhanced productivity, and six-sigma process control. Register today for free expo admission at www.ATXwest.com.