by Bill McBride on 3/01/2011 10:16:00 AM
Tuesday, March 01, 2011
PMI at 61.% in February, up from 60.8% in January, matching the level in May 2004 - the highest since 1983.
From the Institute for Supply Management: January 2011 Manufacturing ISM Report On Business®
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "February's report from the manufacturing sector indicates continuing strong performance as the PMI registered 61.4 percent, a level last achieved in May 2004. New orders and production, driven by strength in exports in particular, continue to drive the composite index (PMI). New orders are growing significantly faster than inventories, and the Customers' Inventories Index indicates supply chain inventories will require continuing replenishment. The Employment Index is above 60 percent for only the third time in the last decade. While there are many positive indicators, there is also concern as industries related to housing continue to struggle and the Prices Index indicates significant inflation of raw material costs across many commodities."The price index was at 82 with "66 percent of respondents reported paying higher prices and 2 percent reported paying lower prices, 32 percent of supply executives reported paying the same prices as in January".
ISM's New Orders Index registered 68 percent in February, which is an increase of 0.2 percentage point when compared to the 67.8 percent reported in January. This is the 20th consecutive month of growth in the New Orders Index.
ISM's Employment Index registered 64.5 percent in February, which is 2.8 percentage points higher than the 61.7 percent reported in January. This is the 17th consecutive month of growth in manufacturing employment.
Click on graph for larger image in new window.
Here is a long term graph of the ISM manufacturing index.
This was a strong report and above expectations. The new orders and employment indexes were especially strong.
Posted by Bill McBride on 3/01/2011 10:16:00 AM