Economy

PMI Manufacturing Index Continued to Gain in February

The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)

The PMI Manufacturing Index, the Institute for Supply Management’s (ISM) Report on Business, increased 1.7 points to 57.7% as 17 of 18 industries reported growth. Bradley J. Holcomb, the chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, said 17 of 18 manufacturing industries reported growth in February.

WHAT RESPONDENTS ARE SAYING …

“Business [is] improving and lead times are extending by two or more weeks.” (Chemical Products)
“Very positive outlook for this quarter. Production goals have been adjusted multiple times and increased each time due to demand.” (Computer & Electronic Products)
“Product demand continues to be solid.” (Plastics & Rubber Products)
“Bookings are heavy early in the season. Expect robust first half of the year.” (Primary Metals)
“Demand still outstrips capacity. Competitors have announced heavy capital investments to increase capacity.” (Food, Beverage & Tobacco Products)
“Sales and business continue to be strong and increasing.” (Machinery)
“Business holding steady in Q1.” (Transportation Equipment)
“Medical device manufacturing is still strong.” (Miscellaneous Manufacturing)
“Even though oil and gas prices are on the upswing, we still face a tough 2017 and will continue to save on costs.” (Petroleum & Coal Products)
“Major focus on commodities and potential [for] further inflation.” (Electrical Equipment, Appliances & Components)

Of the 18 manufacturing industries, 17 reported growth in February in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing. The only industry reporting contraction in February is Furniture & Related Products.

MANUFACTURING AT A GLANCE February 2017
Index	Series Index Feb	Series Index Jan	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI^®	57.7	56.0	+1.7	Growing	Faster	6
New Orders	65.1	60.4	+4.7	Growing	Faster	6
Production	62.9	61.4	+1.5	Growing	Faster	6
Employment	54.2	56.1	-1.9	Growing	Slower	5
Supplier Deliveries	54.8	53.6	+1.2	Slowing	Faster	10
Inventories	51.5	48.5	+3.0	Growing	From Contracting	1
Customers’ Inventories	47.5	48.5	-1.0	Too Low	Faster	5
Prices	68.0	69.0	-1.0	Increasing	Slower	12
Backlog of Orders	57.0	49.5	+7.5	Growing	From Contracting	1
New Export Orders	55.0	54.5	+0.5	Growing	Faster	12
Imports	54.0	50.0	+4.0	Growing	From Unchanged	1
OVERALL ECONOMY Manufacturing Sector				Growing	Faster	93
OVERALL ECONOMY Manufacturing Sector				Growing	Faster	6

Manufacturing ISM^® Report On Business^® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

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PPD Business Staff

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