Published: October 01, 2010
September Manufacturing ISM Report On Business®; PMI at 54.4%; New Orders, Production and Employment Growing; Supplier Deliveries Slower; Inventories Growing
TEMPE, Ariz. - (BUSINESS WIRE) - Economic activity in the manufacturing sector expanded in
September for the 14th consecutive month, and the overall economy
grew for the 17th 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. "While the headline number shows relative strength this month
as the PMI reading of 54.4 percent is still quite positive, the overall
picture is less encouraging. The growth of new orders continued to slow,
as the index is down significantly from its cyclical high of 65.9
percent (January 2010). Production is currently growing at a faster rate
than new orders, but it typically lags and would be expected to weaken
further in the fourth quarter. Manufacturing has enjoyed a stronger
recovery than other sectors of the economy, but it appears that weaker
growth is the expectation for the fourth quarter. Both the Inventories
and Backlog of Orders Indexes are sending strong negative signals of
weakening performance in the sector."
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, 13 are reporting growth in
September, in the following order: Apparel, Leather & Allied Products;
Fabricated Metal Products; Electrical Equipment, Appliances &
Components; Primary Metals; Miscellaneous Manufacturing; Transportation
Equipment; Computer & Electronic Products; Furniture & Related Products;
Plastics & Rubber Products; Chemical Products; Paper Products;
Machinery; and Food, Beverage & Tobacco Products. The three industries
reporting contraction in September are: Wood Products; Printing &
Related Support Activities; and Nonmetallic Mineral Products.
WHAT RESPONDENTS ARE SAYING ...
-
"Business results (top and bottom line) continue to meet or exceed our
operating plan and exceed prior year performance by double digits."
(Chemical Products)
-
"Business continues flat relative to prior month and is expected to
remain flat. Commodities continue to be the main concern heading into
2011." (Food, Beverage & Tobacco Products)
-
"Our business is softening due to seasonal considerations. Overall,
our situation is much better than 2009." (Machinery)
-
"Customers seem to be pulling back on orders. I suspect that they are
trying to reduce their inventory for the approaching year-end."
(Transportation Equipment)
-
"Strategic customers reducing order quantities." (Computer &
Electronic Products)
|
MANUFACTURING AT A GLANCE
SEPTEMBER 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Index
|
|
Series
Index
September
|
|
Series
Index
August
|
|
Percentage
Point
Change
|
|
Direction
|
|
Rate
of Change
|
|
Trend(a)
(Months)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PMI
|
|
54.4
|
|
56.3
|
|
-1.9
|
|
Growing
|
|
Slower
|
|
14
|
|
New Orders
|
|
51.1
|
|
53.1
|
|
-2.0
|
|
Growing
|
|
Slower
|
|
15
|
|
Production
|
|
56.5
|
|
59.9
|
|
-3.4
|
|
Growing
|
|
Slower
|
|
16
|
|
Employment
|
|
56.5
|
|
60.4
|
|
-3.9
|
|
Growing
|
|
Slower
|
|
10
|
|
Supplier Deliveries
|
|
52.3
|
|
56.6
|
|
-4.3
|
|
Slowing
|
|
Slower
|
|
16
|
|
Inventories
|
|
55.6
|
|
51.4
|
|
+4.2
|
|
Growing
|
|
Faster
|
|
3
|
|
Customers' Inventories
|
|
42.5
|
|
43.5
|
|
-1.0
|
|
Too Low
|
|
Slower
|
|
18
|
|
Prices
|
|
70.5
|
|
61.5
|
|
+9.0
|
|
Increasing
|
|
Faster
|
|
15
|
|
Backlog of Orders
|
|
46.5
|
|
51.5
|
|
-5.0
|
|
Contracting
|
|
From Growing
|
|
1
|
|
Exports
|
|
54.5
|
|
55.5
|
|
-1.0
|
|
Growing
|
|
Slower
|
|
15
|
|
Imports
|
|
56.5
|
|
56.5
|
|
0.0
|
|
Growing
|
|
Same
|
|
13
|
|
OVERALL ECONOMY
Manufacturing Sector
|
|
Growing
|
|
Slower
|
|
17
|
|
|
Growing
|
|
Slower
|
|
14
|
(a) Number of months moving in current direction
COMMODITIES REPORTED UP/DOWN IN PRICE and IN
SHORT SUPPLY
Commodities Up in Price
Aluminum; Caustic Soda (2); Copper (2); Corn; Corrugate; Corrugated
Containers (7); Lubricants; Plastic Resins; Polyethylene; Polypropylene;
Rubber Products; Stainless Steel; Stainless Steel Sheets; Steel(b);
Sugar; and Wheat.
Commodities Down in Price
Natural Gas; and Steel(b) (3).
Commodities in Short Supply
Capacitors (3); Cocoa Powder; Electronic Components; Lubricants; and
Titanium Dioxide.
Note: The number of consecutive months the commodity is listed is
indicated after each item.
(b) Reported as both up and down in price.
SEPTEMBER 2010 MANUFACTURING INDEX SUMMARIES
PMI
Manufacturing continued to grow in September, but at a slower rate as
the PMI registered 54.4 percent, a decrease of 1.9 percentage points
when compared to August's reading of 56.3 percent. A reading above 50
percent indicates that the manufacturing economy is generally expanding;
below 50 percent indicates that it is generally contracting.
A PMI in excess of 42 percent, over a period of time, generally
indicates an expansion of the overall economy. Therefore, the PMI
indicates growth for the 17th consecutive month in the overall economy,
as well as expansion in the manufacturing sector for the 14th
consecutive month. Ore stated, "The past relationship between the PMI
and the overall economy indicates that the average PMI for
January through September (57.4 percent) corresponds to a 5.2 percent
increase in real gross domestic product (GDP). In addition, if the PMI
for September (54.4 percent) is annualized, it corresponds to a 4.2
percent increase in real GDP annually."
THE LAST 12 MONTHS
|
|
|
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|
|
Month
|
|
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|
|
|
|
|
|
|
|
PMI
|
|
|
|
|
|
|
|
|
|
|
|
|
Month
|
|
|
|
|
|
|
|
|
|
|
PMI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
|
|
|
|
|
54.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 2010
|
|
|
|
|
|
|
|
|
|
|
59.6
|
|
|
|
|
|
|
Aug 2010
|
|
|
|
|
|
|
|
|
|
|
56.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb 2010
|
|
|
|
|
|
|
|
|
|
|
56.5
|
|
|
|
|
|
|
Jul 2010
|
|
|
|
|
|
|
|
|
|
|
55.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Jan 2010
|
|
|
|
|
|
|
|
|
|
|
58.4
|
|
|
|
|
|
|
Jun 2010
|
|
|
|
|
|
|
|
|
|
|
56.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 2009
|
|
|
|
|
|
|
|
|
|
|
54.9
|
|
|
|
|
|
|
May 2010
|
|
|
|
|
|
|
|
|
|
|
59.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Nov 2009
|
|
|
|
|
|
|
|
|
|
|
53.7
|
|
|
|
|
|
|
Apr 2010
|
|
|
|
|
|
|
|
|
|
|
60.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct 2009
|
|
|
|
|
|
|
|
|
|
|
55.2
|
|
|
|
|
|
|
Average for 12 months - 56.7
High - 60.4
Low - 53.7
|
New Orders
ISM's New Orders Index registered 51.1 percent in September, which is a
decrease of 2 percentage points when compared to the 53.1 percent
reported in August. This is the 15th consecutive month of growth in the
New Orders Index. A New Orders Index above 50.2 percent, over time, is
generally consistent with an increase in the Census Bureau's series on
manufacturing orders (in constant 2000 dollars).
The seven industries reporting growth in new orders in September -
listed in order - are: Furniture & Related Products; Fabricated Metal
Products; Primary Metals; Electrical Equipment, Appliances & Components;
Paper Products; Transportation Equipment; and Computer & Electronic
Products. The seven industries reporting decreases in new orders in
September - listed in order - are: Wood Products; Printing & Related
Support Activities; Machinery; Chemical Products; Miscellaneous
Manufacturing; Nonmetallic Mineral Products; and Food, Beverage &
Tobacco Products.
|
New Orders
|
|
|
|
|
|
%Better
|
|
|
|
|
%Same
|
|
|
|
|
%Worse
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
26
|
|
|
|
|
52
|
|
|
|
|
22
|
|
|
|
|
+4
|
|
|
|
|
51.1
|
|
Aug 2010
|
|
|
|
|
|
29
|
|
|
|
|
49
|
|
|
|
|
22
|
|
|
|
|
+7
|
|
|
|
|
53.1
|
|
Jul 2010
|
|
|
|
|
|
27
|
|
|
|
|
53
|
|
|
|
|
20
|
|
|
|
|
+7
|
|
|
|
|
53.5
|
|
Jun 2010
|
|
|
|
|
|
36
|
|
|
|
|
50
|
|
|
|
|
14
|
|
|
|
|
+22
|
|
|
|
|
58.5
|
Production
ISM's Production Index registered 56.5 percent in September, which is a
decrease of 3.4 percentage points from the August reading of 59.9
percent. An index above 51 percent, over time, is generally consistent
with an increase in the Federal Reserve Board's Industrial Production
figures. This is the 16th consecutive month the Production Index has
registered above 50 percent.
The 11 industries reporting growth in production during the month of
September - listed in order - are: Apparel, Leather & Allied Products;
Transportation Equipment; Fabricated Metal Products; Furniture & Related
Products; Miscellaneous Manufacturing; Primary Metals; Food, Beverage &
Tobacco Products; Electrical Equipment, Appliances & Components;
Computer & Electronic Products; Machinery; and Chemical Products. The
four industries reporting a decrease in production in September are:
Petroleum & Coal Products; Wood Products; Nonmetallic Mineral Products;
and Printing & Related Support Activities.
|
Production
|
|
|
|
|
|
%Better
|
|
|
|
|
%Same
|
|
|
|
|
%Worse
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
31
|
|
|
|
|
54
|
|
|
|
|
15
|
|
|
|
|
+16
|
|
|
|
|
56.5
|
|
Aug 2010
|
|
|
|
|
|
33
|
|
|
|
|
53
|
|
|
|
|
14
|
|
|
|
|
+19
|
|
|
|
|
59.9
|
|
Jul 2010
|
|
|
|
|
|
31
|
|
|
|
|
50
|
|
|
|
|
19
|
|
|
|
|
+12
|
|
|
|
|
57.0
|
|
Jun 2010
|
|
|
|
|
|
40
|
|
|
|
|
47
|
|
|
|
|
13
|
|
|
|
|
+27
|
|
|
|
|
61.4
|
Employment
ISM's Employment Index registered 56.5 percent in September, which is
3.9 percentage points lower than the 60.4 percent reported in August.
This is the 10th consecutive month of growth in manufacturing
employment. An Employment Index above 49.8 percent, over time, is
generally consistent with an increase in the Bureau of Labor Statistics
(BLS) data on manufacturing employment.
Eight of the 18 manufacturing industries reported growth in employment
in September in the following order: Petroleum & Coal Products;
Miscellaneous Manufacturing; Electrical Equipment, Appliances &
Components; Fabricated Metal Products; Paper Products; Chemical
Products; Machinery; and Transportation Equipment. The three industries
reporting a decrease in employment during September are: Wood Products;
Plastics & Rubber Products; and Food, Beverage & Tobacco Products.
|
Employment
|
|
|
|
|
|
%Higher
|
|
|
|
|
|
%Same
|
|
|
|
|
%Lower
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
25
|
|
|
|
|
|
62
|
|
|
|
|
13
|
|
|
|
|
+12
|
|
|
|
|
56.5
|
|
Aug 2010
|
|
|
|
|
|
26
|
|
|
|
|
|
69
|
|
|
|
|
5
|
|
|
|
|
+21
|
|
|
|
|
60.4
|
|
Jul 2010
|
|
|
|
|
|
26
|
|
|
|
|
|
66
|
|
|
|
|
8
|
|
|
|
|
+18
|
|
|
|
|
58.6
|
|
Jun 2010
|
|
|
|
|
|
26
|
|
|
|
|
|
63
|
|
|
|
|
11
|
|
|
|
|
+15
|
|
|
|
|
57.8
|
Supplier Deliveries
The delivery performance of suppliers to manufacturing organizations was
slower in September as the Supplier Deliveries Index registered 52.3
percent, which is 4.3 percentage points lower than the 56.6 percent
registered in August. This is the 16th consecutive month the Supplier
Deliveries Index has been above 50 percent. A reading above 50 percent
indicates slower deliveries.
The eight industries reporting slower supplier deliveries in September -
listed in order - are: Plastics & Rubber Products; Primary Metals;
Chemical Products; Miscellaneous Manufacturing; Fabricated Metal
Products; Machinery; Electrical Equipment, Appliances & Components; and
Transportation Equipment. The two industries reporting faster deliveries
in September are: Nonmetallic Mineral Products; and Printing & Related
Support Activities.
|
Supplier Deliveries
|
|
|
|
|
|
%Slower
|
|
|
|
|
%Same
|
|
|
|
|
%Faster
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
17
|
|
|
|
|
76
|
|
|
|
|
7
|
|
|
|
|
+10
|
|
|
|
|
52.3
|
|
Aug 2010
|
|
|
|
|
|
19
|
|
|
|
|
78
|
|
|
|
|
3
|
|
|
|
|
+16
|
|
|
|
|
56.6
|
|
Jul 2010
|
|
|
|
|
|
28
|
|
|
|
|
66
|
|
|
|
|
6
|
|
|
|
|
+22
|
|
|
|
|
58.3
|
|
Jun 2010
|
|
|
|
|
|
23
|
|
|
|
|
71
|
|
|
|
|
6
|
|
|
|
|
+17
|
|
|
|
|
57.3
|
Inventories
Manufacturers' inventories grew in September as the Inventories Index
registered 55.6 percent. The index is 4.2 percentage points higher than
the 51.4 percent reported in August. An Inventories Index greater than
42.6 percent, over time, is generally consistent with expansion in the
Bureau of Economic Analysis' (BEA) figures on overall manufacturing
inventories (in chained 2000 dollars).
The seven industries reporting higher inventories in September - listed
in order - are: Apparel, Leather & Allied Products; Computer &
Electronic Products; Transportation Equipment; Fabricated Metal
Products; Machinery; Chemical Products; and Miscellaneous Manufacturing.
The four industries reporting decreases in inventories in September are:
Wood Products; Plastics & Rubber Products; Paper Products; and Food,
Beverage & Tobacco Products.
|
Inventories
|
|
|
|
|
|
%Higher
|
|
|
|
|
%Same
|
|
|
|
|
%Lower
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
27
|
|
|
|
|
58
|
|
|
|
|
15
|
|
|
|
|
+12
|
|
|
|
|
55.6
|
|
Aug 2010
|
|
|
|
|
|
19
|
|
|
|
|
68
|
|
|
|
|
13
|
|
|
|
|
+6
|
|
|
|
|
51.4
|
|
Jul 2010
|
|
|
|
|
|
19
|
|
|
|
|
60
|
|
|
|
|
21
|
|
|
|
|
-2
|
|
|
|
|
50.2
|
|
Jun 2010
|
|
|
|
|
|
13
|
|
|
|
|
66
|
|
|
|
|
21
|
|
|
|
|
-8
|
|
|
|
|
45.8
|
Customers' Inventories(c)
The ISM Customers' Inventories Index registered 42.5 percent in
September, 1 percentage point lower than in August when the index
registered 43.5 percent. This is the 18th consecutive month the
Customers' Inventories Index has been below 50 percent, indicating that
respondents believe their customers' inventories are too low at this
time.
Food, Beverage & Tobacco Products is the only manufacturing industry
reporting customers' inventories as being too high during September. The
nine industries reporting customers' inventories as too low during
September - listed in order - are: Nonmetallic Mineral Products;
Miscellaneous Manufacturing; Printing & Related Support Activities;
Transportation Equipment; Electrical Equipment, Appliances & Components;
Paper Products; Machinery; Fabricated Metal Products; and Plastics &
Rubber Products.
|
Customers' Inventories
|
|
|
%
Reporting
|
|
|
%Too
High
|
|
|
%About
Right
|
|
|
%Too
Low
|
|
|
Net
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
79
|
|
|
13
|
|
|
59
|
|
|
28
|
|
|
-15
|
|
|
42.5
|
|
Aug 2010
|
|
|
65
|
|
|
11
|
|
|
65
|
|
|
24
|
|
|
-13
|
|
|
43.5
|
|
Jul 2010
|
|
|
81
|
|
|
6
|
|
|
66
|
|
|
28
|
|
|
-22
|
|
|
39.0
|
|
Jun 2010
|
|
|
67
|
|
|
4
|
|
|
68
|
|
|
28
|
|
|
-24
|
|
|
38.0
|
Prices(c)
The ISM Prices Index registered 70.5 percent in September, 9 percentage
points higher than the 61.5 percent reported in August. This is the 15th
consecutive month the Prices Index has registered above 50 percent.
While 45 percent of respondents reported paying higher prices and 4
percent reported paying lower prices, 51 percent of supply executives
reported paying the same prices as in August. A Prices Index above 49.3
percent, over time, is generally consistent with an increase in the
Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.
The 13 industries reporting paying increased prices during the month of
September - listed in order - are: Wood Products; Plastics & Rubber
Products; Primary Metals; Food, Beverage & Tobacco Products; Machinery;
Fabricated Metal Products; Transportation Equipment; Paper Products;
Computer & Electronic Products; Miscellaneous Manufacturing; Printing &
Related Support Activities; Chemical Products; and Electrical Equipment,
Appliances & Components. There were no industries reporting paying lower
prices on average during September.
|
Prices
|
|
|
|
|
|
%Higher
|
|
|
|
|
%Same
|
|
|
|
|
%Lower
|
|
|
|
|
Net
|
|
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
|
|
|
45
|
|
|
|
|
51
|
|
|
|
|
4
|
|
|
|
|
+41
|
|
|
|
|
70.5
|
|
Aug 2010
|
|
|
|
|
|
35
|
|
|
|
|
53
|
|
|
|
|
12
|
|
|
|
|
+23
|
|
|
|
|
61.5
|
|
Jul 2010
|
|
|
|
|
|
33
|
|
|
|
|
49
|
|
|
|
|
18
|
|
|
|
|
+15
|
|
|
|
|
57.5
|
|
Jun 2010
|
|
|
|
|
|
32
|
|
|
|
|
50
|
|
|
|
|
18
|
|
|
|
|
+14
|
|
|
|
|
57.0
|
Backlog of Orders(c)
ISM's Backlog of Orders Index registered 46.5 percent in September, 5
percentage points lower than the 51.5 percent reported in August. Of the
86 percent of respondents who reported their backlog of orders, 19
percent reported greater backlogs, 26 percent reported smaller backlogs,
and 55 percent reported no change from August.
The four industries reporting increased order backlogs in September are:
Electrical Equipment, Appliances & Components; Nonmetallic Mineral
Products; Furniture & Related Products; and Miscellaneous Manufacturing.
The eight industries reporting decreases in order backlogs during
September - listed in order - are: Wood Products; Machinery; Computer &
Electronic Products; Printing & Related Support Activities;
Transportation Equipment; Food, Beverage & Tobacco Products; Fabricated
Metal Products; and Chemical Products.
|
Backlog of Orders
|
|
|
%
Reporting
|
|
|
%Greater
|
|
|
%Same
|
|
|
%Less
|
|
|
Net
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
86
|
|
|
19
|
|
|
55
|
|
|
26
|
|
|
-7
|
|
|
46.5
|
|
Aug 2010
|
|
|
84
|
|
|
25
|
|
|
53
|
|
|
22
|
|
|
+3
|
|
|
51.5
|
|
Jul 2010
|
|
|
86
|
|
|
28
|
|
|
53
|
|
|
19
|
|
|
+9
|
|
|
54.5
|
|
Jun 2010
|
|
|
85
|
|
|
31
|
|
|
52
|
|
|
17
|
|
|
+14
|
|
|
57.0
|
New Export Orders(c)
ISM's New Export Orders Index registered 54.5 percent in September,
which is 1 percentage point lower than the 55.5 percent reported in
August. This is the 15th consecutive month of growth in the New Export
Orders Index.
The seven industries reporting growth in new export orders in September
- listed in order - are: Nonmetallic Mineral Products; Furniture &
Related Products; Fabricated Metal Products; Miscellaneous
Manufacturing; Electrical Equipment, Appliances & Components; Chemical
Products; and Computer & Electronic Products. The three manufacturing
industries reporting a decrease in export orders during September are:
Food, Beverage & Tobacco Products; Machinery; and Transportation
Equipment.
|
New Export Orders
|
|
|
%
Reporting
|
|
|
%Higher
|
|
|
%Same
|
|
|
%Lower
|
|
|
Net
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
79
|
|
|
19
|
|
|
71
|
|
|
10
|
|
|
+9
|
|
|
54.5
|
|
Aug 2010
|
|
|
80
|
|
|
16
|
|
|
79
|
|
|
5
|
|
|
+11
|
|
|
55.5
|
|
Jul 2010
|
|
|
78
|
|
|
20
|
|
|
73
|
|
|
7
|
|
|
+13
|
|
|
56.5
|
|
Jun 2010
|
|
|
78
|
|
|
19
|
|
|
74
|
|
|
7
|
|
|
+12
|
|
|
56.0
|
Imports(c)
Imports of materials by manufacturers continued to expand in September
as the Imports Index registered 56.5 percent, which is the same rate of
growth as reported in August. This is the 13th consecutive month of
growth in imports.
The eight industries reporting growth in imports during the month of
September - listed in order - are: Plastics & Rubber Products;
Nonmetallic Mineral Products; Electrical Equipment, Appliances &
Components; Machinery; Transportation Equipment; Chemical Products;
Computer & Electronic Products; and Fabricated Metal Products. The two
industries reporting a decrease in imports during September are: Paper
Products; and Food, Beverage & Tobacco Products.
|
Imports
|
|
|
%
Reporting
|
|
|
%Higher
|
|
|
%Same
|
|
|
%Lower
|
|
|
Net
|
|
|
Index
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
82
|
|
|
22
|
|
|
69
|
|
|
9
|
|
|
+13
|
|
|
56.5
|
|
Aug 2010
|
|
|
80
|
|
|
18
|
|
|
77
|
|
|
5
|
|
|
+13
|
|
|
56.5
|
|
Jul 2010
|
|
|
78
|
|
|
14
|
|
|
77
|
|
|
9
|
|
|
+5
|
|
|
52.5
|
|
Jun 2010
|
|
|
77
|
|
|
20
|
|
|
73
|
|
|
7
|
|
|
+13
|
|
|
56.5
|
(c) The Backlog of Orders, Prices, Customers' Inventories, Imports and
New Export Orders Indexes do not meet the accepted criteria for seasonal
adjustments.
Buying Policy
Average commitment lead time for Capital Expenditures decreased 19 days
to 108 days. Average lead time for Production Materials decreased 2 days
to 50 days. Average lead time for Maintenance, Repair and Operating
(MRO) Supplies increased 3 days to 24 days.
|
Percent Reporting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
Hand-to-
Mouth
|
|
|
30
Days
|
|
|
60
Days
|
|
|
90
Days
|
|
|
6
Months
|
|
|
1
Year+
|
|
|
Average
Days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
27
|
|
|
7
|
|
|
12
|
|
|
20
|
|
|
24
|
|
|
10
|
|
|
108
|
|
Aug 2010
|
|
|
26
|
|
|
4
|
|
|
10
|
|
|
14
|
|
|
33
|
|
|
13
|
|
|
127
|
|
Jul 2010
|
|
|
30
|
|
|
7
|
|
|
11
|
|
|
13
|
|
|
28
|
|
|
11
|
|
|
112
|
|
Jun 2010
|
|
|
28
|
|
|
8
|
|
|
9
|
|
|
16
|
|
|
29
|
|
|
10
|
|
|
112
|
|
Production Materials
|
|
|
Hand-to-
Mouth
|
|
|
30
Days
|
|
|
60
Days
|
|
|
90
Days
|
|
|
6
Months
|
|
|
1
Year+
|
|
|
Average
Days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
16
|
|
|
44
|
|
|
22
|
|
|
13
|
|
|
4
|
|
|
1
|
|
|
50
|
|
Aug 2010
|
|
|
23
|
|
|
34
|
|
|
25
|
|
|
13
|
|
|
2
|
|
|
3
|
|
|
52
|
|
Jul 2010
|
|
|
23
|
|
|
35
|
|
|
24
|
|
|
11
|
|
|
5
|
|
|
2
|
|
|
52
|
|
Jun 2010
|
|
|
25
|
|
|
36
|
|
|
22
|
|
|
11
|
|
|
4
|
|
|
2
|
|
|
50
|
|
MRO Supplies
|
|
|
Hand-to-
Mouth
|
|
|
30
Days
|
|
|
60
Days
|
|
|
90
Days
|
|
|
6
Months
|
|
|
1
Year+
|
|
|
Average
Days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 2010
|
|
|
49
|
|
|
36
|
|
|
13
|
|
|
1
|
|
|
1
|
|
|
0
|
|
|
24
|
|
Aug 2010
|
|
|
54
|
|
|
35
|
|
|
8
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
21
|
|
Jul 2010
|
|
|
50
|
|
|
38
|
|
|
7
|
|
|
5
|
|
|
0
|
|
|
0
|
|
|
23
|
|
Jun 2010
|
|
|
48
|
|
|
38
|
|
|
11
|
|
|
3
|
|
|
0
|
|
|
0
|
|
|
23
|
About this Report
The data presented herein is obtained from a survey of manufacturing
supply managers based on information they have collected within their
respective organizations. ISM makes no representation, other than that
stated within this release, regarding the individual company data
collection procedures. Use of the data is in the public domain and
should be compared to all other economic data sources when used in
decision-making.
Data and Method of Presentation
The Manufacturing ISM Report On Business
is based on data compiled from purchasing and supply executives
nationwide. Membership of the Manufacturing Business Survey Committee is
diversified by NAICS, based on each industry's contribution to gross
domestic product (GDP). Manufacturing Business Survey Committee
responses are divided into the following NAICS code categories: Food,
Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied
Products; Wood Products; Paper Products; Printing & Related Support
Activities; Petroleum & Coal Products; Chemical Products; Plastics &
Rubber Products; Nonmetallic Mineral Products; Primary Metals;
Fabricated Metal Products; Machinery; Computer & Electronic Products;
Electrical Equipment, Appliances & Components; Transportation Equipment;
Furniture & Related Products; and Miscellaneous Manufacturing (products
such as medical equipment and supplies, jewelry, sporting goods, toys
and office supplies).
Survey responses reflect the change, if any, in the current month
compared to the previous month. For each of the indicators measured (New
Orders, Backlog of Orders, New Export Orders, Imports, Production,
Supplier Deliveries, Inventories, Customers' Inventories, Employment and
Prices), this report shows the percentage reporting each response, the
net difference between the number of responses in the positive economic
direction (higher, better and slower for Supplier Deliveries) and the
negative economic direction (lower, worse and faster for Supplier
Deliveries), and the diffusion index. Responses are raw data and are
never changed. The diffusion index includes the percent of positive
responses plus one-half of those responding the same (considered
positive).
The resulting single index number for those meeting the criteria for
seasonal adjustments (PMI, New Orders, Production, Employment, Supplier
Deliveries and Inventories) is then seasonally adjusted to allow for the
effects of repetitive intra-year variations resulting primarily from
normal differences in weather conditions, various institutional
arrangements, and differences attributable to non-moveable holidays. All
seasonal adjustment factors are supplied by the U.S. Department of
Commerce and are subject annually to relatively minor changes when
conditions warrant them. The PMI is a composite index based on the
seasonally adjusted diffusion indexes for five of the indicators with
equal weights: New Orders, Production, Employment, Supplier Deliveries
and Inventories.
Diffusion indexes have the properties of leading indicators and are
convenient summary measures showing the prevailing direction of change
and the scope of change. A PMI reading above 50 percent indicates that
the manufacturing economy is generally expanding; below 50 percent
indicates that it is generally declining. A PMI in excess of 42 percent,
over a period of time, indicates that the overall economy, or gross
domestic product (GDP), is generally expanding; below 42 percent, it is
generally declining. The distance from 50 percent or 42 percent is
indicative of the strength of the expansion or decline. With some of the
indicators within this report, ISM has indicated the departure point
between expansion and decline of comparable government series, as
determined by regression analysis.
Responses to Buying Policy reflect the percent reporting the current
month's lead time, the approximate weighted number of days ahead for
which commitments are made for Production Materials; Capital
Expenditures; and Maintenance, Repair and Operating (MRO) Supplies,
expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six
months (180 days), a year or more (360 days), and the weighted average
number of days. These responses are raw data, never revised, and not
seasonally adjusted since there is no significant seasonal pattern.
The Manufacturing ISM Report On Business
is published monthly by the Institute for Supply Management . The
Institute for Supply Management , established in 1915, is the largest
supply management organization in the world as well as one of the most
respected. ISM's mission is to lead the supply management profession
through its standards of excellence, research, promotional activities
and education. This report has been issued by the association since
1931, except for a four-year interruption during World War II.
The full text version of the Manufacturing ISM Report On
Business is posted on ISM's Web
site at www.ism.ws
on the first business day of every month after 10:10 a.m. (ET).
The next Manufacturing ISM Report On Business
featuring the October 2010 data will be released at 10:00 a.m. (ET) on
Monday, November 1, 2010.
Institute for Supply Management, Tempe
Rose Marie Goupil,
800-888-6276, Ext. 3015
E-mail: rgoupil@ism.ws
Copyright © 2012, Business Wire, Inc., All rights reserved.
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