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Unformatted text preview: MANUFACTURING AT A GLANCE INDEX AUG INDEX JUL INDEX % POINT CHANGE DIRECTION RATE OF CHANGE TREND* (MONTHS) PMI 50.6 50.9-0.3 Growing Slower 25 New Orders 49.6 49.2 +0.4 Contracting Slower 2 Production 48.6 52.3-3.7 Contracting From Growing 1 Employment 51.8 53.5-1.7 Growing Slower 23 Supplier Deliveries 50.6 50.4 +0.2 Slowing Faster 27 Inventories 52.3 49.3 +3.0 Growing From Contracting 1 Customers Inventories 46.5 44.0 +2.5 Too Low Slower 29 Prices 55.5 59.0-3.5 Increasing Slower 26 Backlog of Orders 46.0 45.0 +1.0 Contracting Slower 3 Exports 50.5 54.0-3.5 Growing Slower 26 Imports 55.5 53.5 +2.0 Growing Faster 24 OVERALL ECONOMY Growing Slower 27 MANUFACTURING SECTOR Growing Slower 25 *Number of months moving in current direction. Manufacturing ISM Report On Business data is seasonally adjusted except for Backlog of Orders, Prices, Customers Inventories, Imports and New Export Orders. 2011 2010 2009 42.5% = Overall Economy Breakeven Line PMI ISM Report On Business AUGUST 2011 A PMI in excess of 42.5 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 27th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 25th consecutive month. The past relationship between the PMI and the overall economy indicates that the average PMI for January through August (56.8 percent) corresponds to a 5 percent increase in real gross domestic product (GDP). In addition, if the PMI for August (50.6 percent) is annualized, it corresponds to a 2.8 percent increase in real GDP annually. Employment and Inventories Growing; Supplier Deliveries Slower; New Orders and Production Contracting PMI at 50.6% Note: The number of consecutive months the commodity is listed is indicated after each item. *Reported as both up and down in price. COMMODITIES REPORTED Commodities Up in Price: Aluminum (12); Aluminum Products; Butadiene; Caustic Soda; Copper* (13); Copper Based Products (10); Corn; Diesel Fuel; Electric/Electronic Components (2); Freight Rates; Glycol Ether; Hydraulic Components/Motors; Paper; Rubber; Rubber Products (7); Silver; Stainless Steel; and Steel* (12). Commodities Down in Price: Cold Rolled Steel; Copper*; Natural Gas; Plastic Products; Plastic Resins; Polyethylene Resin; Polypropylene Resin; and Steel* (4). Commodities in Short Supply: Electric/Electronic Components (8); Hydraulic Components/Motors/Pumps; and Titanium Dioxide. Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). E conomic activity in the manufac- turing sector expanded in August for the 25th consecutive month, and the overall economy grew for the 27th consecutive month, say the nations supply executives in the latest Manufacturing ISM Report On Business ....
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This note was uploaded on 12/29/2011 for the course SCM 371 taught by Professor Tobias during the Fall '11 term at Michigan State University.
- Fall '11