ISM Manufacturing Index for October 2012

Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for October 2012:

Actual: 51.7%

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the manufacturing sector contracted.

For September 2012, the PMI was 51.5%.

Here are quotes from respondents in various sectors of the U.S. manufacturing economy:

"       'Market is still very soft.' (Paper Products)

        'Business is picking up.' (Furniture & Related Products)

        '[Our] 4th quarters usually begin to show a slowdown in demand, and this year is no different; prices are also dropping.' (Wood Products)

        'Demand down slightly due to customers pre-buying ahead of announced material price increases.' (Plastics & Rubber Products)

        'The slowing of capital expenditure in Europe and China has lowered our backlog for Q4.' (Computer & Electronic Products)

        'We see a general softening in the steel and automotive markets in the fourth quarter.' (Fabricated Metal Products)

        'Cuts in healthcare reimbursement rates continue to negatively affect top-line revenue.' (Miscellaneous Manufacturing)

        'Business conditions stable to slightly improving.' (Transportation Equipment)

        'Sales and order intake have slowed.' (Primary Metals)

        'Europe is still very much a concern. Global recovery is still fragile.' (Chemical Products)"

Click here to view the complete ISM report.

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