Track and Quotes

Show Shipment Information - Track and Trace PackageTrack and Trace
Get a Shipping Rate QuoteRate Quote

Manufacturing Index Hits Six Year High
Monday, 01 March 2010 00:00
PMI of 58.4 shows acceleration in sixth month of growth

Manufacturing business increased in January for the sixth consecutive month after 13 months of decline, according to a survey of the nation’s supply executives by the Institute for Supply Management.

The PMI index of economic activity hit 58.4 percent, its highest level since August 2004, when it reached 58.5 percent. Growth in January accelerated as the index jumped 3.5 percentage points compared to December's seasonally adjusted reading of 54.9 percent.

New orders, production and employment grew in January. Supplier deliveries were slower. Inventories have been contracting for 45 months in a row, since April 2006. But the contraction slowed somewhat in January as the inventories index moved up 3.5 percentage points to 46.5 percent.

A PMI 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 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, this month’s reading corresponds to a 5.5 percent increase in GDP and the ninth consecutive month of growth in the overall economy.

“This month's report provides significant assurance that the manufacturing sector is in recovery. Both the New Orders and Production Indexes are above 60 percent, indicating strong current and future performance for manufacturing. This month, 13 of 18 industries reported growth, up from nine industries last month, and this is a good indication that the impact of the recovery is expanding,” said Norbert J. Ore, chair of the ISM business survey committee.

Journal of Commerce Online, 3/1/2010