Manufacturing--Manufacturing Expands for 17th Consecutive Month

New Orders, Production and Employment Growing;Supplier Deliveries Slower; Inventories Growing

Economic activity in the manufacturing sector expanded in December for the 17th consecutive month, and the overall economy grew for the 20th consecutive month, said the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued last week by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector continued its growth trend as indicated by this month's report. We saw significant recovery for much of the U.S. manufacturing sector in 2010. The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle. Additionally, manufacturers that export have benefitted from both global demand and the weaker dollar. December's strong readings in new orders and production, combined with positive comments from the panel, should create momentum as we go into the first quarter of 2011."

PERFORMANCE BY INDUSTRY

Of the 18 manufacturing industries, 11 are reporting growth in December, in the following order: Apparel, Leather & Allied Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; Textile Mills; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Chemical Products. The four industries reporting contraction in December are: Nonmetallic Mineral Products; Paper Products; Printing & Related Support Activities; and Miscellaneous Manufacturing.

WHAT RESPONDENTS ARE SAYING ...

• "Company outlook looks positive into 2011. Solid revenue growth across the globe driven by strong volume in Q3 and Q4 2010." (Chemical Products)
• "We continue to see strong demand for our product in Europe and Asia." (Electrical Equipment, Appliances & Components)
• "The end of the year is surprisingly busy." (Computer & Electronic Products)
• "Business remains slow, while vendors clamor for increases that should have no foundation in economics." (Nonmetallic Mineral Products)
• "Strong pressure still exists on raw material prices in almost every area. It is unclear as to whether they can get them." (Plastics & Rubber Products)

MANUFACTURING AT A GLANCE DECEMBER 2010
Index	Series Index December	Series Index November	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI	57.0	56.6	+0.4	Growing	Faster	17
New Orders	60.9	56.6	+4.3	Growing	Faster	18
Production	60.7	55.0	+5.7	Growing	Faster	19
Employment	55.7	57.5	-1.8	Growing	Slower	13
Supplier Deliveries	55.9	57.2	-1.3	Slowing	Slower	19
Inventories	51.8	56.7	-4.9	Growing	Slower	6
Customers' Inventories	40.0	45.5	-5.5	Too Low	Faster	21
Prices	72.5	69.5	+3.0	Increasing	Faster	18
Backlog of Orders	47.0	46.0	+1.0	Contracting	Slower	4
Exports	54.5	57.0	-2.5	Growing	Slower	18
Imports	50.5	53.0	-2.5	Growing	Slower	16
OVERALL ECONOMY				Growing	Faster	20
Manufacturing Sector				Growing	Faster	17

*Number of months moving in current direction.

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management™. The Institute for Supply Management™, established in 1915, is the largest supply management organization in the world as well as one of the most respected. ISM's mission is to lead the supply management profession through its standards of excellence, research, promotional activities and education. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

The full text version of the Manufacturing ISM Report On Business is posted on ISM's website at www.ism.ws on the first business day of every month after 10:10 a.m. (ET).

Source: AED News