May Manufacturing ISM Report On Business; PMI at 55%
Monday, June 04, 2007
Press release from the issuing company
May Manufacturing ISM Report On Business(R); PMI at 55%
06/01/2007 (Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May for the fourth consecutive month, while the overall economy grew for the 67th 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, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Manufacturing expanded in May as the PMI rose to its highest level in the last 12 months. Both the New Orders and Production Indexes indicated growth, continuing a trend that is now in its fourth month. The ISM Inventories Index indicates that manufacturers are now in their 10th month of inventory reduction. A major concern of respondents is the rate of price increases covering a wide variety of commodities."
TOP PERFORMING INDUSTRIES
The 12 industries reporting growth in May — listed in order — are: Nonmetallic Mineral Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Chemical Products; Petroleum & Coal Products; Computer & Electronic Products; Miscellaneous Manufacturing; Transportation Equipment; Machinery; Wood Products; Textile Mills; and Electrical Equipment, Appliances & Components.
WHAT RESPONDENTS ARE SAYING ...
* "Pricing in the chemicals market is now being influenced by crude oil price escalation ..." (Chemical Products)
* "Customers need detailed explanations to justify increases on raw materials." (Fabricated Metal Products)
* "Slower than expected GDP growth in the 1Q causing some 'pull back' on sales forecast/estimates through the end of 2007." (Plastics & Rubber Products)
* "Exports remain above plan with a positive outlook for the balance of '07." (Transportation Equipment)
* "Steady, same as last year at this time." (Furniture & Related Products)