PMI -- May 2010 Manufacturing ISM Report On Business (Graph, Text, Table)

Bob DeMarco
All American Investor

WHAT RESPONDENTS ARE SAYING ...

• "Tight supply conditions exist for electronic components." (Computer & Electronic Products)
• "No signs of the ramp-up abating anytime soon." (Machinery)
• "Volatility of steel and steel-making components is forcing us to raise prices on our shipped goods to automotive customers." (Fabricated Metal Products)
• "Aftermarket sales increased 25 percent during the past quarter." (Transportation Equipment)
• "Sales exceeded budget for the fourth consecutive month." (Food, Beverage & Tobacco Products)

PMI at 59.7%

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Manufacturing ISM Report On Business (NAPM, Graph)

Economic activity in the manufacturing sector failed to grow in July for the 18th consecutive month, while the overall economy grew for the third consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.



The current index is 48.9 versus 44.8 in June. An increase of 4.1 percent.

A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent that it is generally declining. Institute for Supply Management.

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Institute for Supply Management (ISM) , Chart

ISM Manufacturing Composite Monthly (NAPM, May Release)

Nice up tick in the number from 36.3 to 40.1 percent. The low reading for the move was in December at 32.9 percent.

Some encouraging news, the new orders index rose to 47.2 percent.

"The decline in the manufacturing sector continues to moderate. After six consecutive months below the 40-percent mark, the PMI, driven by the New Orders Index at 47.2 percent, shows a significant improvement. While this is a big step forward, there is still a large gap that must be closed before manufacturing begins to grow once again. The Customers' Inventories Index indicates that channels are paring inventories to acceptable levels after reporting inventories as 'too high' for eight consecutive months. The prices manufacturers pay for their goods and services continue to decline; however, copper prices have bottomed and are now starting to rise. This is definitely a good start for the second quarter."

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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ISM Manufacturing, NAPM (60 Year Chart)

Current reading 36.3, Previous reading 35.8

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