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Economic Data (USA)

Friday, February 01, 2013

ISM Manufacturing Index for January 2013

Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for January 2013:

Predicted: 50.7%
Actual: 53.1%

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 50.2% (revised.)

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

"...'Fiscal cliff, uncertainty in general and EU economic weakness are factors causing our customers to be very tentative with commitments for product purchases in 2013.' (Machinery)

'Midwest drought impact will be felt at least through midyear, impacting protein, sweeteners, eggs, oils, emulsifiers, etc.' (Food, Beverage + Tobacco Products)

'Slowing interest in high-dollar purchases reflects continuing economic uncertainty.' (Miscellaneous Manufacturing)

'Expenditure and investment are expected to remain high in North America in Q1 and Q2, 2013.' (Petroleum + Coal Products)

'Housing sales are trending upward in light of overall market uncertainty, translating to improving optimism in appliance market.' (Electrical Equipment, Appliances + Components)

'Still waiting for reaction to consumer tax increases.' (Fabricated Metal Products)

'Government spending is very low, probably due to the fiscal cliff and the looming debt ceiling.' (Transportation Equipment)

'Business is improving.' (Furniture + Related Products)

'The general theme developing in our industry is that we can move suitable volumes. However, profit margin is elusive.' (Wood Products)

'Overall production volume decreasing. Decrease is led by decline in exports of 10 percent.' (Chemical Products)..."

Click here to view the complete ISM report.

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