ISM Reports manufacturing sector failed to grow in October
Tuesday, November 04, 2008
Press release from the issuing companyTempe, Arizona (November 03, 2008) — Economic activity in the manufacturing sector failed to grow in October for the third consecutive month, and the overall economy concluded 83 consecutive months of growth, 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. "The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. It appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices. This is the lowest level for the PMI since September 1982 when it registered 38.8 percent. In this report, we see inflationary pressures dissolving as the Prices Index fell to 37 percent, the lowest since December 2001 when it registered 33.2 percent. Export orders also contracted for the first time following 70 months of growth."
PERFORMANCE BY INDUSTRY
The two industries reporting growth in October — listed in order — are: Apparel, Leather & Allied Products; and Computer & Electronic Products. The industries reporting contraction in October are: Petroleum & Coal Products; Nonmetallic Mineral Products; Wood Products; Fabricated Metal Products; Furniture & Related Products; Textile Mills; Machinery; Plastics & Rubber Products; Primary Metals; Printing & Related Support Activities; Transportation Equipment; Miscellaneous Manufacturing; Electrical Equipment, Appliances, & Components; Paper Products; Food, Beverage & Tobacco Products; and Chemical Products.
WHAT RESPONDENTS ARE SAYING ...
- "Credit market causing suppliers to run closer on terms." (Food, Beverage & Tobacco Products)
- "Appear to be bouncing along the bottom — volume is good but pricing is tough." (Primary Metals)
- "Although the volume was down compared to last month, the volume was still higher than last year at the same time." (Chemical Products)
- "Hurricane in Houston disrupted production for 10 days at our plant." (Fabricated Metal Products)
- "Delivery issues continue across our range of purchased commodities as suppliers trim inventory commitments." (Electrical Equipment, Appliances & Components)
Full report can be viewed here:
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