Manufacturing ISM Report On Business®, July 2014
National report (USA), released by ISM on April 1, 2014.
The report was issued on August 1 by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.
“The July PMI® registered 57.1 percent, an increase of 1.8 percentage points from June’s reading of 55.3 percent, indicating expansion in manufacturing for the 14th consecutive month. The New Orders Index registered 63.4 percent, an increase of 4.5 percentage points from the 58.9 percent reading in June, indicating growth in new orders for the 14th consecutive month. The Production Index registered 61.2 percent, 1.2 percentage points above the June reading of 60 percent. Comments from the panel are generally positive, while some indicate concern over global geopolitical situations.”
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, 17 are reporting growth in July in the following order: Furniture & Related Products; Textile Mills; Apparel, Leather & Allied Products; Printing & Related Support Activities; Plastics & Rubber Products; Paper Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Machinery; Chemical Products; Miscellaneous Manufacturing; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Primary Metals; Transportation Equipment; and Computer & Electronic Products.
The only industry reporting contraction in July is Wood Products.
WHAT RESPONDENTS ARE SAYING …
- “Status quo…sales are okay (not great). Costs are generally flat.” (Food, Beverage & Tobacco Products)
- “We see slow growth in business as we see a slow growing economy.” (Fabricated Metal Products)
- “Business is still very good and we are very optimistic for the rest of the year.” (Transportation Equipment)
- “Bookings down, but shipments strong.” (Electrical Equipment, Appliances & Components)
- “Overall business conditions still good in our industry.” (Computer & Electronic Products)
- “Geopolitics still present a considerable risk as well as the European market.” (Chemical Products)
- “Contractors are very busy. Difficult time getting many to bid, especially electrical.” (Paper Products)
- “Salaries for engineering labor continue to increase above general inflation due to market competition and shortages in certain specialty skills.” (Petroleum & Coal Products)
- “Economy shows many signs of strength.” (Machinery)
- “Russia’s demand for medical devices from the U.S. has dropped by 40 percent.” (Miscellaneous Manufacturing)
PMI (Purchasing Managers Index) July 2014
Manufacturing expanded in July as the PMI® registered 57.1 percent, an increase of 1.8 percentage points when compared to June’s reading of 55.3 percent. July’s PMI reading of 57.1 is the highest reading since April 2011 when the PMI® registered 58.9 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 43.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the July PMI® indicates growth for the 62nd consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 14th consecutive month. Holcomb stated, “The past relationship between the PMI® and the overall economy indicates that the average PMI® for January through July (54.4 percent) corresponds to a 3.7 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI® for July (57.1 percent) is annualized, it corresponds to a 4.6 percent increase in real GDP annually.”
Read the full Manufacturing ISM Report On Business…
The data presented in the Manufacturing ISM Report On Business®, 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. View the Manufacturing ISM Report On Business® »
About the Manufacturing ISM Report On Business
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. The Manufacturing ISM Report On Business® is based on data compiled from purchasing and supply executives nationwide. This report has been issued by the association since 1931, except for a four-year interruption during World War II.