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Economic Data (USA)

Monday, January 04, 2016

ISM Manufacturing Index for December 2015

Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for December 2015:

Predicted: 49.2%
Actual: 48.2%

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 48.6%.

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

    "Low oil prices are negatively impacting oil and gas exploration activities. Low oil prices are generally positive for the petrochemical industry."
(Petroleum and Coal Products)

    "Month-over-month sales were down, profitability up."
(Chemical Products)

    "December revenue is flat compared to last month."
(Computer and Electronic Products)

    "Still very slow due to oil prices."
(Fabricated Metal Products)

    "Deflation in many commodities is helping with product savings. Sales are strong with a backlog."
(Transportation Equipment)

"Targeting reduced inventories for raw materials by year-end."
(Textile Mills)

"Sales have dropped and continue to be soft. This is resulting in [a] reduction in workforce and furloughs."
(Apparel, Leather and Allied Products)

    "Downturn in China and European markets are negatively affecting our business."

    "Medical device business continues to be strong, both in the U.S. and abroad."
(Miscellaneous Manufacturing)

    "Customers are tightening their inventories for year-end, impacting our sales and shipments."
(Food, Beverage & Tobacco Products)

    "Business is going well. Low fuel prices keep full size SUV and truck sales at high volumes."
(Plastics and Rubber Products)

Click here to view the complete ISM report.

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