Manufacturing Sector Fails To Grow For The 15th Consecutive Month
Monday, May 04, 2009
Press release from the issuing company(Tempe, Arizona) - Economic activity in the manufacturing sector failed to grow in April for the 15th consecutive month, and the overall economy contracted for the seventh 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 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."
PERFORMANCE BY INDUSTRY
The only manufacturing industry reporting growth in April is Miscellaneous Manufacturing. The industries reporting contraction in April - listed in order - are: Printing & Related Support Activities; Primary Metals; Apparel, Leather & Allied Products; Textile Mills; Chemical Products; Furniture & Related Products; Petroleum & Coal Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Computer & Electronic Products; and Nonmetallic Mineral Products.
WHAT RESPONDENTS ARE SAYING ...
- "International customers are having trouble getting cash for new orders, even though they need/want the equipment." (Computer & Electronic Products)
- "Starting to see some signs of increased production and demand from some automotive customers." (Fabricated Metal Products)
- "Business conditions continue to be soft, but agriculture-related products are still quite bullish." (Machinery)
- "We are optimistic that things will change for the better in 3Q." (Chemical Products)
- "Starting to hear of slight upticks in orders from some sectors of our business but not all." (Electrical Equipment, Appliances & Components)
COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY
Commodities Up in Price
Copper (2) is the only commodity reported up in price.
Commodities Down in Price
Aluminum (7); Aluminum Based Products; Caustic Soda (2); Corrugated Containers (4); Fuel Surcharges; Natural Gas (9); Scrap Metal; Steel (8); and Steel Products (3).
Commodities in Short Supply
No commodities are reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.
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