The Institute for Supply Management (ISM) reported to day that the PMI for January
PMI was at 53.5%a decrease of 1.6% points from 55.1% in December. The employment index was at 54.1%, down 1.9 percentage points from 56.0% in December. The New Orders Index came in at 52.9 percent, a decrease of 4.9 percentage points from the seasonally adjusted reading of 57.8 percent in December.
These numbers are softer than we expected for January, but are still indicative of positive news for manufacturing- “Economic activity in the manufacturing sector expanded in January for the 20th consecutive month, and the overall economy grew for the 68th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.”
Markets (industries) of interest to our shops that reported growth in January 2015 included: Fabricated Metal Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; Machinery; Food, Computer & Electronic Products.
For PMPA’s 2014 Year end summary of our Business Trends Index click here.
Calendar year 2014 was strong and steady until the final quarter with its seasonal and expected fall off. Over 90% of respondents in December 2014 shared positive (same or improved) expectations for Net Sales, Lead Times, Employment, and Profitability for the first quarter of 2015. With strong expectations in Automotive, Aerospace, Housing, and Medical Device Industry, we believe that the first quarter of 2014 will be a busy one for precision machining. – See more at: http://www.pmpa.org/news/latest-news/2015/01/22/business-trends-2014-review-and-summary#sthash.BXDQAFun.dpuf
We just came back from 5 days on the West Coast visiting shops and sentiments were positive and optimistic except for the outlook for finding skilled workers.
Manufacturing continues to be a great place to be in the current economy.
Hat tip to Calculated Risk Blog for their Chart of ISM PMI