PMI™ at 57%; December Manufacturing ISM Report On Business®; New Orders, Production and Employment Growing; Inventories Contracting; Supplier Deliveries Slowing

The nine industries reporting growth in production during the month of December — listed in order — are: Plastics & Rubber Products; Furniture & Related Products; Computer & Electronic Products; Paper Products; Primary Metals; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Transportation Equipment. The four industries reporting a decrease in production in December are: Electrical Equipment, Appliances & Components; Chemical Products; Machinery; and Nonmetallic Mineral Products.

Production

%Better

%Same

%Worse

Net

Index

Dec 2013

28

56

16

+12

62.2

Nov 2013

32

55

13

+19

62.8

Oct 2013

30

54

16

+14

60.8

Sep 2013

29

57

14

+15

62.6

Employment

ISM's Employment Index registered 56.9 percent in December, which is 0.4 percentage point higher than the 56.5 percent reported in November, and is the highest reading since June 2011 when the Employment Index registered 59 percent. This month's reading indicates expansion in employment for the sixth consecutive month, at a slightly faster rate than in November. An Employment Index above 50.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, nine reported growth in employment in December in the following order: Textile Mills; Furniture & Related Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Primary Metals; Paper Products; Transportation Equipment; Computer & Electronic Products; and Fabricated Metal Products. The five industries reporting a decrease in employment in December are: Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Chemical Products; Machinery; and Nonmetallic Mineral Products.

Employment

%Higher

%Same

%Lower

Net

Index

Dec 2013

19

68

13

+6

56.9

Nov 2013

18

70

12

+6

56.5

Oct 2013

21

63

16

+5

53.2

Sep 2013

20

66

14

+6

55.4

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations slowed in December at a faster rate relative to November as the Supplier Deliveries Index registered 54.7 percent. This month's reading is 1.5 percentage points higher than the 53.2 percent reported in November. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

The six industries reporting slower supplier deliveries in December — listed in order — are: Plastics & Rubber Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Paper Products; Computer & Electronic Products; and Transportation Equipment. The three industries reporting faster supplier deliveries in December are: Primary Metals; Machinery; and Chemical Products. Nine industries reported no change in supplier deliveries in December compared to November.

Supplier Deliveries

%Slower

%Same

%Faster

Net

Index

Dec 2013

12

79

9

+3

54.7

Nov 2013

6

89

5

+1

53.2

Oct 2013

11

83

6

+5

54.7

Sep 2013

10

86

4

+6

52.6


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