Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for July 2014:
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 factory sector contracted.
Last month, the PMI was 55.3%.
The following is a sampling of quotes from a diverse pool of U.S. manufacturers:
"...'Status quo...sales are okay (not great). Costs are generally flat.'
(Food, Beverage & Tobacco Products)
'We see slow growth in business as we see a slow growing economy.'
(Fabricated Metal Products)
'Business is still very good and we are very optimistic for the rest of the year.'
'Bookings down, but shipments strong.'
(Electrical Equipment, Appliances & Components)
'Overall business conditions still good in our industry.'
(Computer & Electronic Products)
'Geopolitics still present a considerable risk as well as the European market.'
'Contractors are very busy. Difficult time getting many to bid, especially electrical.'
'Salaries for engineering labor continue to increase above general inflation due to market competition and shortages in certain specialty skills.'
(Petroleum & Coal Products)
'Economy shows many signs of strength.'
'Russia's demand for medical devices from the U.S. has dropped by 40 percent.'
Click here to view the complete ISM report
Labels: ism, manufacturing, pmi, purchasing_managers_index