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ISM issues positive report on U.S. manufacturing

Economic activity in the manufacturing sector expanded in April for the 33rd consecutive month, as the overall economy grew for the 35th consecutive month
By Patrick Burnson, Executive Editor
May 02, 2012

Economic activity in the manufacturing sector expanded in April for the 33rd consecutive month, as the overall economy grew for the 35th consecutive month.

According to the latest monthly report issued by the Institute of Supply Management (ISM), the Manufacturing ISM Report On Business is based on data provided monthly by purchasing executives at over 350 industrial companies. It reflects changes in the current month compared with the previous month. Responses are raw data.

“The PMI registered 54.8 percent, an increase of 1.4 percentage points from March’s reading of 53.4 percent, indicating expansion in the manufacturing sector for the 33rd consecutive month,” said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management.

In an interview with Modern, Holcomb added that next’s week’s semiannual report will provide more of a forecast.

“We suspect that supply chain managers will continue to employ lean strategies to remain nimble and responsive to demand cycles,” he said.

Sixteen of the 18 industries reflected overall growth in April, and the New Orders, Production and Employment Indexes all increased, indicating growth at faster rates than in March. The Prices Index for raw materials remained at 61 percent in April, the same rate as reported in March.

Comments from the panel generally indicate stable to strong demand, with some concerns cited over increasing oil prices and “European stability.”

ISM reports strong manufacturing output in March
The PMI, the index used by the ISM to measure manufacturing activity, was 53.4 in March, which was 1 percent ahead of February’s 52.4.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


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