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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Economic activity in the manufacturing sector expanded in May for the 10th consecutive month, and the overall economy grew for the 13th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The manufacturing sector grew for the 10th consecutive month during May. The rate of growth as indicated by the PMI is driven by continued strength in new orders and production. Employment continues to grow as manufacturers have added to payrolls for six consecutive months. The recovery continues to broaden as 16 of 18 industries report growth. There are a number of reports, particularly in the tech sector, of shortages of components; this is the result of excessive inventory de-stocking during the downturn."

PERFORMANCE BY INDUSTRY

Sixteen of the 18 manufacturing industries are reporting growth in May, in the following order: Paper Products; Wood Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Computer & Electronic Products; Furniture & Related Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Primary Metals; Printing & Related Support Activities; Chemical Products; Nonmetallic Mineral Products; Machinery; Apparel, Leather & Allied Products; and Food, Beverage & Tobacco Products. The only industry reporting contraction in May is Petroleum & Coal Products.

Notes: A PMI reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent that it is generally declining. Copyright, 2008, Institute for Supply Management.




Original content Bob DeMarco, All American Investor