Manufacturing sector failed to grow
Thursday, April 02, 2009
Press release from the issuing company(Tempe, Arizona) - Economic activity in the manufacturing sector failed to grow in March for the 14th consecutive month, and the overall economy contracted for the sixth 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 rapid decline in manufacturing appears to have moderated somewhat, as the PMI remains in the mid-30s for a third consecutive month. While the PMI is slightly higher in March, the New Orders Index offers greater encouragement, as it rose above the 40-percent mark for the first time in seven months. The Production Index showed no benefit as yet from the improvement in new orders, as it continued to decline at a rate similar to March. The rate of decline in the Employment Index slowed slightly, and the same held true for the Prices Index. A special question was asked with regard to the Economic Stimulus Package, and five of the 18 manufacturing industries expect to derive some benefit from the stimulus." (See Special Questions section at the end of this release.)
PERFORMANCE BY INDUSTRY
None of the 18 manufacturing industries reported growth in March. The industries reporting contraction in March - listed in order - are: Fabricated Metal Products; Textile Mills; Machinery; Chemical Products; Primary Metals; Printing & Related Support Activities; Transportation Equipment; Plastics & Rubber Products; Petroleum & Coal Products; Wood Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Miscellaneous Manufacturing; Computer & Electronic Products; and Apparel, Leather & Allied Products.
WHAT RESPONDENTS ARE SAYING ...
- "We remain challenged to align our capacities with demand." (Nonmetallic Mineral Products)
- "Most of the international markets have been reducing inventory levels and they are forecasting improvements in the next 4 to 6 months." (Chemical Products)
- "Many pockets of improvement." (Electrical Equipment, Appliances & Components)
- "Still very slow. No stimulus package for manufacturing. Down 30 percent." (Fabricated Metal Products)
- "What we are feeling now is that customers aren't making their final payments on equipment that has already been shipped." (Machinery)
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