December Good for Manufacturing
TEMPE, AZ, Jan. 3 - Manufacturing growth accelerated in December, driven by a significant increase in the new orders. Production ticked down - its third straight decline - but backlogs firmed, said the Institute for Supply Management.
Manufacturing grew for the 19th consecutive month, ISM said, based on its monthly poll of the supply chain.
"This completes a strong year for manufacturing based on the ISM data, as the overall index averaged above 60% for 2004," ISM chairman Norbert Ore said. "While there is continuing upward pressure on prices, the rate of increase is slowing and definitely trending in the right direction."
The PMI measure of economic activity rose to 58.6%. New orders rose 5.9 points and production fell 0.1 point.
Comments from respondents focused on inflation, margins and seasonal issues.
For the month, imports and exports rose while employment fell.
Electronic Components and Equipment, and Industrial and Commercial Equipment and Computers were among the sectors reporting growth.
|
|
August |
Sept. |
Oct. |
Nov. |
Dec. |
|
PMI |
59.0 |
58.5 |
56.8 |
57.8 |
58.6 |
|
New orders |
61.2 |
58.1 |
58.3 |
61.5 |
67.4 |
|
Production |
59.5 |
61.6 |
58.9 |
57.0 |
56.9 |
|
Inventories |
51.7 |
51.0 |
48.2 |
50.7 |
53.4 |
|
Customer inventories |
45.5 |
41.4 |
43.5 |
43.5 |
44.0 |
|
Backlogs |
55.0 |
55.0 |
49.0 |
47.5 |
54.0 |
Source: Institute for Supply Management, Jan. 3, 2005
