Manufacturing Still Strong- December 2011 ISM Report

Institute for Supply Management’s December 2011 PMI increased 1.2 percent over November, coming in at 53.9. This is the 31st consecutive month of expansion in the manufacturing sector. Manufacturing is still expanding according to this indicator.

Facts keep us bullish on manufacturing.

Facts like these ISM  Numbers support our continued belief that manufacturing continues to lead the recovery and is the place to be if you are looking for a career. Otherwise, facts supporting this bullish attitude are hard to find, until our end of the month figures show up.

The ISM numbers showed Fabricated Metals, of which Precision Machining is a sub-sector, to report decline or contraction in December.

New Orders, Production, Employment, Prices, Order Backlog, Exports and imports all grew in December according to ISM.

Supplier deliveries remained the same, while inventories fell by 1.2 percent, and Customer Inventories fell by 7.5 %.

The drop in Customer Inventories is a signal that our order books will be picking up in the first quarter of 2012.

Pricing of raw materials remains highly uncertain, with respondents reporting both increasing and decreasing prices for Aluminum, Plastic, and Steel.

Why are you bullish about manufacturing? Do you feel like a bull with a blindfold?

ISM Report

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2 Responses to Manufacturing Still Strong- December 2011 ISM Report

  1. Blindfold? No. Near-sighted? Yes. Manufacturers tied to automotive and aerospace should do well as both show solid growth in the near-to-medium term. Those of us tied to the consumer (source of 70% of US GDP), however, are far more likely to get whipsawed as shopping waxes and wanes with people feeling more or less secure in their jobs, homes and financial futures.

    • speakingofprecision says:

      I think that’s right Mike.The role of the consumer is the real driver in all markets. as we learned in 2009-2009 without demand there are no sales…
      Miles

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