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Economic Data (USA)

Monday, December 03, 2012

ISM Manufacturing Index for November 2012

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

Predicted: 51.7%
Actual: 49.5%

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.

Last month, the PMI was 51.7%.

The following is a sampling of quotes from a diverse pool of U.S. manufacturers:

"...'Conditions still appear to be positive for continued growth in sales.' (Machinery)

'Business is steady, but not much more than that. We are in a lull.' (Food, Beverage & Tobacco Products)

'The principle business conditions that will affect the company over the next three or four quarters will be the U.S. federal government tax and budgetary policies; the impact of those policies is not yet clear.' (Petroleum & Coal Products)

'Differences between first half of year and remaining half are very dramatic, growing to a peak in the middle of the year with a gradual decline since.' (Plastics & Rubber Products)

'Seeing a slowdown in request for quote activity.' (Computer & Electronic Products)

'The fiscal cliff is the big worry right now. We will not look toward any type of expansion until this is addressed; if the program that is put in place is more taxes and big spending cuts — which will push us toward recession — forget it.' (Fabricated Metal Products)

'Seeing a slowdown in demand across markets.' (Electrical Equipment, Appliances & Components)

'Economy is very sluggish. Production is down and orders have slowed considerably from Q1.' (Transportation Equipment)

'East Coast storms delayed some shipments.' (Primary Metals)

'Global economic uncertainty still seems to be sticking around which is not necessarily making things worse, but it is also not making things better from a demand standpoint.' (Chemical Products)..."

Click here to view the complete ISM report.

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