ISM's December Manufacturing Index Rises

Jan. 13, 2005
By John S. McClenahen Economists generally expected the Institute for Supply Management's (ISM) manufacturing index to close out 2004 with a gain. It did. ISM's index, officially known as the PMI, rose to 58.6% in December, up eight-tenths of a ...
ByJohn S. McClenahen Economists generally expected the Institute for Supply Management's (ISM) manufacturing index to close out 2004 with a gain. It did. ISM's index, officially known as the PMI, rose to 58.6% in December, up eight-tenths of a percentage point from November's 57.8%, the Tempe, Ariz.-based ISM reported on Jan. 3. A figure above 50% indicates that the manufacturing sector of the economy generally is growing; a figure below 50% signals that the sector is contracting. New orders, production and employment all grew in December, ISM said, although the rates of growth for production and employment were slower than in November. December's PMI, driven by a significant increase in the new orders index, is very encouraging as growth . . . accelerated for the second consecutive month," noted Norbert J. Ore, chair of ISM's manufacturing business survey committee and group director for strategic sourcing and procurement at Georgia-Pacific Corp. However, purchasing and supply executives at the same time expressed continued concerns about prices for energy and basic commodities. "While many manufacturers are enjoying strong sales, there is concern that inflation is taking its toll on margins, thus reducing profits," ISM said. Prices for 34 categories, from alloy steel to vinyl, were up in December, according to the ISM report on manufacturing business activity, which is based on data from purchasing and supply executives in more than 400 industrial companies.

Popular Sponsored Recommendations

Learn How Manufacturers like 3M Cater to Digital Buyers to Increase Sales

Aug. 13, 2023
In this article, you'll learn how manufacturers can balance educating and guiding their buyers through their complex buying process with a digital first approach to product discovery...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!