Commodities Up in Price
#1 Busheling Scrap; Corrugated Packaging; Galvanized Steel; Methanol; Plastic Resins; Stainless Steel; Steel; Steel — HRPO; Steel — Hot Rolled (2); and Wood (2).
Commodities Down in Price
Aluminum (2); Brass; Corn Based Products (2); Fuel (2); Hydraulic Components; MRO Supplies; and Office Supplies.
Commodities in Short Supply
No commodities are reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.
DECEMBER 2013 MANUFACTURING INDEX SUMMARIES
PMI™
Manufacturing expanded in December as the PMI™ registered 57 percent, a decrease of 0.3 percentage point when compared to November's reading of 57.3 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 42.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the December PMI™ indicates growth for the 55th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the seventh consecutive month. Holcomb stated, "The past relationship between the PMI™ and the overall economy indicates that the average PMI™ for January through December (53.9 percent) corresponds to a 3.7 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI™ for December (57 percent) is annualized, it corresponds to a 4.6 percent increase in real GDP annually."
THE LAST 12 MONTHS
|
Month |
PMI™ |
|
Month |
PMI™ |
|
Dec 2013 |
57.0 |
|
Jun 2013 |
50.9 |
|
Nov 2013 |
57.3 |
|
May 2013 |
49.0 |
|
Oct 2013 |
56.4 |
|
Apr 2013 |
50.7 |
|
Sep 2013 |
56.2 |
|
Mar 2013 |
51.3 |
|
Aug 2013 |
55.7 |
|
Feb 2013 |
54.2 |
|
Jul 2013 |
55.4 |
|
Jan 2013 |
53.1 |
|
Average for 12 months – 53.9 High – 57.3 Low – 49.0 | ||||
New Orders
ISM's New Orders Index registered 64.2 percent in December, an increase of 0.6 percentage point when compared to the November reading of 63.6 percent. This represents growth in new orders for the seventh consecutive month, at a faster rate than in November. A New Orders Index above 52.2 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).
The 11 industries reporting growth in new orders in December — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Computer & Electronic Products; Primary Metals; Machinery; Transportation Equipment; Miscellaneous Manufacturing; and Chemical Products. The only industry reporting a decrease in new orders during December is Nonmetallic Mineral Products. Six industries reported no change in new orders in December compared to November.
|
New Orders |
%Better |
%Same |
%Worse |
Net |
Index |
|
Dec 2013 |
34 |
52 |
14 |
+20 |
64.2 |
|
Nov 2013 |
36 |
46 |
18 |
+18 |
63.6 |
|
Oct 2013 |
29 |
54 |
17 |
+12 |
60.6 |
|
Sep 2013 |
32 |
53 |
15 |
+17 |
60.5 |
Production
ISM's Production Index registered 62.2 percent in December, which is a decrease of 0.6 percentage point when compared to the 62.8 percent reported in November. This month's reading indicates growth in production for the seventh consecutive month, at a slightly slower rate than in November. An index above 51.2 percent, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.
