by Bill McBride on 1/03/2017 10:06:00 AM
Tuesday, January 03, 2017
The ISM manufacturing index indicated expansion in December. The PMI was at 54.7% in December, up from 53.2% in November. The employment index was at 53.1%, up from 52.3% last month, and the new orders index was at 60.2%, up from 53.0%.
From the Institute for Supply Management: December 2016 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 91st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.Click on graph for larger image.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The December PMI® registered 54.7 percent, an increase of 1.5 percentage points from the November reading of 53.2 percent. The New Orders Index registered 60.2 percent, an increase of 7.2 percentage points from the November reading of 53 percent. The Production Index registered 60.3 percent, 4.3 percentage points higher than the November reading of 56 percent. The Employment Index registered 53.1 percent, an increase of 0.8 percentage point from the November reading of 52.3 percent. Inventories of raw materials registered 47 percent, a decrease of 2 percentage points from the November reading of 49 percent. The Prices Index registered 65.5 percent in December, an increase of 11 percentage points from the November reading of 54.5 percent, indicating higher raw materials prices for the 10th consecutive month. The PMI®, New Orders, Production and Employment Indexes all registered new highs for the year 2016, and the forward-looking comments from the panel are largely positive.”
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 53.8%, and suggests manufacturing expanded at as faster pace in December than in November.
Another solid report.