ISM Manufacturing Index for June 2024

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for June 2024:

=========

Predicted: 49.0%

• Actual: 48.5% (-0.2 point month-on-month change)

=========

Previous month (revised): 48.7%

=========

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 made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector contracted in June for the third consecutive month and the 19th time in the last 20 months, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

•     'High volume of customer orders.'
   [Chemical Products]
  

•     'Customers continue to cut orders with short notice, causing a ripple effect throughout lower-tier suppliers.'
   [Transportation Equipment]
  

•     'Consumer demand and inventories are no longer stable at retail and food service establishments.'
   [Food, Beverage + Tobacco Products]
  

•     'While orders are still steady, inventory from the previous month is enough to satisfy current- and near-term commitments.'
   [Computer + Electronic Products]
  

•     'Customers ordering more to create buffer stocks (in case of) future shortages.'
   [Electrical Equipment, Appliances + Components]
  

•     'Order levels in two of our main divisions are indicating weak demand, and now we must work to reduce inventory levels.'
   [Fabricated Metal Products]
  

•     'Sales backlog is decreasing. We have furloughed a portion of our workforce as a result.'
   [Machinery]
  

•     'The level of production is lower due to decreased demand for products.'
   [Miscellaneous Manufacturing]
  

•     'Elevated financing costs have dampened demand for residential investment. We have reduced inventories of production components.'
   [Wood Products]
  

•     'Orders have increased slightly due to seasonal restocking.'
   [Plastics + Rubber Products]
  

==========

 

CHART: ISM Manufacturing Index
 June 2024 Update

=========

• Click here to view the complete ISM report

=========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Non-Manufacturing Index (NMI®) for May 2023

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for May 2023:

==========

Predicted: 51.0%

• Actual: 50.3%  (-1.6 points month-on-month change)

==========

Previous month (revised): 51.9%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service Categories Include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

==========

From today' report:

"...Economic activity in the services sector expanded in May for the fifth consecutive month as the Services PMI® registered 50.3 percent, say the nation's purchasing and supply executives in the latest Services ISM® Report On Business®. The sector has grown in 35 of the last 36 months, with the lone contraction in December of last year..."

===========

Here's A Sampling Of Comments
Made By Survey Participants:

• "...'Restaurant sales continue to track positive year over year, up an average of 8% past month. Employment needs have leveled off, and we are in a position to evaluate and upgrade rather than just maintain. Supply chain pressures have eased overall with some categories still hot spots. We are in a position to continue investing in technology upgrades and restaurant remodels.'
  [Accommodation & Food Services]
  

• 'Overall slowing growth and market conditions dragging on some construction sectors.'
  [Construction]
  

• 'As a higher-education institute, enrollment will have a major impact on our institution. Factors to consider will be the economy (state and national), as well as continued funding for education. Our enrollment is currently projected to drop 2.5%, which will have a negative effect on our budget.'
  [Educational Services]
  

• 'Pent-up demand for services is driving strong revenue performance, but expenses (labor and supplies) continue to put pressure on margins, hindering the financial forecast. There is modest improvement in financial metrics, but it is becoming clear we will have to find ways to do more with less. Supply chains are stabilizing, though some segments remain choppy. The overall outlook, however, suggests the forecast is good for the next quarter. Pent-up demand for services is also causing capacity constraints, but we appear to be managing appropriately at this time.'
  [Health Care & Social Assistance]
  

• 'Electronic components supply is strong, and lead times are nearly back to pre-pandemic.'
  [Information]
  

• 'Economy is slowing amid increased financial banking and leasing activity. Credit standards have increased, and approvals have fallen -- thus, a tight credit situation.'
  [Management of Companies & Support Services]
  

• 'Everything seems to have leveled off: not getting any worse, not getting any better.'
  [Professional, Scientific & Technical Services]
  

• 'Lead times are starting to shorten, due in part to greater transportation availability. Prices, in general, are continuing to increase but at a slower pace. Supply chain is becoming much more reliable.'
  [Public Administration]
  

• 'Overall business is good, and there has not been a significant change in direction.'
  [Retail Trade]
  

• 'Business has significantly increased, with more orders, newer customers and more activity in general. More end users are getting back to business as usual, fighting for lower prices and taking a few more days to pay. The leverage point seems to have shifted back to end users, which is healthy.'
  [Transportation & Warehousing]
  

• 'Business conditions continue to remain elevated as CapEx (capital expenditures) spending in clean energy follows regulatory demands.'
  [Utilities]
  

• 'Supply is plentiful, freight is moving quickly and costs are coming down. This is a 180-degree change from a year ago. Also, sales demand is down.'
  [Wholesale Trade]..."
  
  

===========

• Click here to view the complete ISM report
  
  
•  Charts

==========

CHART: ISM Non-Manufacturing (Services) Index
(NMI®) May 2023 Update

==========

 

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Non-Manufacturing Index (NMI®) for May 2022

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for May 2022:

==========

Predicted: 56.0%

• Actual: 55.9%  (-1.2 points month-on-month change)

==========

Previous month (revised): 57.1%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service Categories Include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

==========

From today' report:

"...Economic activity in the services sector grew in May for the 24th month in a row -- with the Services PMI® registering 55.9 percent -- say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®..."

===========

Here's A Sampling Of Comments
Made By Survey Participants::

• "...'Supply chain improving, with more reliability of supplier deliveries. Inflationary pressures increased on goods and services. Employment also improving in most markets. Fewer daily fires and more planning time.'
   [Accommodation + Food Services]
  
  
  'Demand seems to be very high for all of the high-voltage electric products we purchase. Lead times are quadruple what they normally are.'
   [Construction]
  
  
  'Long lead times continue to plague equipment deliveries; higher prices or surcharges added to pricing proposals. The ban on Russian imports is causing a shortage of gasses, especially helium. There has been an increase in new college applicants, signaling a strengthening of the higher education sector.'
   [Educational Services]
  
  
  'The paper industry is still being hampered by employment issues, freight costs and scarcity of truckers, as well as the war in Ukraine. European paper sent to North America is being slashed due to the war and the lack of fiber, along with high energy costs. Mills in North America are still struggling to keep up with demand.'
   [Information]
  
  
  'Unstable prices on various commodities are making budgetary planning difficult. We are maintaining a cautious approach due to energy costs continuing to increase.'
   [Management of Companies + Support Services]
  
  
  'Demand for all labor types remains strong, as open positions continue to exceed candidates to fill those positions. Light industrial, heavy industrial and information technology labor roles are particularly difficult to fill. Companies are having to pay more and offer incentives to attract talent. Resignations continue at a record pace across all age groups, and baby boomer retirements continue to increase.'
   [Professional, Scientific + Technical Services]
  
  
  'Concerns about how the new COVID-19 subvariants and rising cases may impact staffing.'
   [Public Administration]
  
  
  'Chip shortage showing no signs of easing.'
   [Retail Trade]
  
  
  'Exhausting. Continuous shortages, transportation delays and price increases all contribute to the destruction of historical lead times and firm commitments on delivery dates. This requires placing orders earlier and qualifying secondary sources. It is relentless.'
   [Utilities]
  
  
  'National consumer and builder demand continues to drive sales domestically. COVID-19 in China continues to affect our supply chain more than the Russia-Ukraine war.'
   [Wholesale Trade]..."
  
  

===========

• Click here to view the complete ISM report

==========

CHART: ISM Non-Manufacturing (Services) Index (NMI®)
May 20222 Update

==========

 

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Manufacturing Index for April 2022

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for April 2022:

=========

Predicted: 57.0%

• Actual: 55.4% (-1.7 point month-on-month change)

=========

Previous month (revised): 57.1%

=========

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 made-in-the-USA sector contracted.

=========

From Today's Report:

"...The April Manufacturing PMI® registered 55.4%. This is the lowest reading since the July 2020 (53.9%.)

Economic activity in the manufacturing sector grew in April, with the overall economy achieving a 23rd consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'Tier-2 supplier shutdowns in Shanghai are causing a ripple effect for our suppliers in other parts of China. Long delays at ports, including in the U.S., are still providing supply challenges. Inflation is out of control. Fuel costs, and therefore freight costs, are leading the upward cycle. At some point, the economy must give way; it will be tough to have real growth with such pressure on costs. Despite the issues and poor outlook, business remains brisk.'
   [Chemical Products]
  

 

• 'Continued strong demand with improvements in the supply chain. Delays still exist, but supply issues are slowly improving. Cost increases in multiple categories.'
   [Transportation Equipment]
  

 

• 'Supply chain is still constrained, and prices continue to rise. We are focusing on ways to stay profitable while continuing to fill customer orders. Relationship management and strong negotiation skills are extremely important right now.'
   [Food, Beverage + Tobacco Products]
  

 

• 'New order entries are still very strong. Unfortunately, logistics issues have (not) yet improved, so lead times remain extended.'
   [Machinery]
  

 

• 'Due to electronic component supply chain issues, production output has been lower than normal. Backlog is growing due to the supply chain issues. New order sales are steady, except international orders are lower.'
   [Fabricated Metal Products]
  

 

• 'Business is strong. Backlog continues to grow due to new orders and inconsistent supply chain conditions. Shortages of components are the main factor limiting our production.'
   [Electrical Equipment, Appliances + Components]
  

 

• 'The shutdowns in China due to a new COVID-19 wave are causing supply concerns for late second quarter and early third quarter. We have extended lead times to customers and are ordering product from China to cover demand through Q4 and early 1Q 2023.'
   [Miscellaneous Manufacturing]
  

 

• 'Overall, improvements in supply chain are occurring on larger scale items, but we see suppliers that sell us low-volume items struggling in some cases with getting feed stocks and raw materials they need. Freight continues to plague things as well.'
   [Nonmetallic Mineral Products]
  

 

• 'Business is still very robust. Material price increases continue to be passed on (to customers) based on costs of raw materials, logistics and labor to produce products.'
   [Plastics + Rubber Products]..."

==========

 

CHART: ISM Manufacturing Index - April 2022 Update

=========

• Click here to view the complete ISM report

=========

 

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Non-Manufacturing Index (NMI®) for March 2022

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for March 2022:

==========

Predicted: 58.0%

• Actual: 58.3%  (+1.8 points month-on-month change)

==========

Previous month (revised): 56.5%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service Categories Include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

==========

From today' report:

"...Economic activity in the services sector grew in March for the 22nd month in a row, with the Services PMI® registering 58.3 percent, say the nation's purchasing and supply executives in the latest Services ISM® Report On Business®..."

===========

Here's A Sampling Of Comments
Made By Survey Participants::

• "...'Supply chain challenges continue at about the same levels as last month. Employment has improved as COVID-19 cases are declining. Restaurant sales have improved since Valentine’s Day, with mask and vaccine verification mandates being dropped.'
   [Accommodation + Food Services]
  
  
  'Grain and fertilizer prices are near all-time highs, resulting in decreased purchasing.'
   [Agriculture, Forestry, Fishing + Hunting]
  
  
  'Labor and inflation continue to push costs higher across the board for food and food-service supplies.'
   [Educational Services]
  
  
  'Pricing pressures are stronger than ever due to the Russia-Ukraine [war], and energy costs are skyrocketing.'
   [Construction]
  
  
  'Supply chain disruptions are still a problem due to reduced allocations and manufacturer back orders. Demand continues to outpace manufacturing capacity.'
   [Health Care + Social Assistance]
  
  
  'Energy costs are putting a pinch on all suppliers. We have received many surcharge notices.'
   [Information]
  
  
  'Concerns over inflation and rising energy prices are causing our company to take a cautious approach, especially related to planned capital expenditures.'
   [Management of Companies + Support Services]
  
  
  'Long lead times for electronic components are becoming normal and expected. Chemical deliveries are often delayed due to a lack of qualified hazardous materials drivers.'
   [Public Administration]
  
  
  'Global supply chain issues continue to disrupt chip supply, which is suppressing production of new vehicles.'
   [Retail Trade]
  
  
  'We are still seeing raw material subcomponent shortages, transportation delays and price increases.'
   [Utilities]
  
  
  'Constrained supply of many key product groups continues. Inflation worsening. Overall sales and profitability continue to be strong.'
   [Wholesale Trade]..."
  
  

===========

• Click here to view the complete ISM report

==========

CHART: ISM Non-Manufacturing (Services) Index (NMI®)
March 20222 Update

==========

 

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Manufacturing Index for March 2022

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for March 2022:

=========

Predicted: 58.0%

• Actual: 57.1% (-1.5 point month-on-month change)

=========

Previous month (revised): 58.6%

=========

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 made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector grew in March, with the overall economy achieving a 22nd consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'No letup yet in supply chain challenges, especially electronic components. Relying more and more on the broker market.'
   [Computer + Electronic Products]
  

 

• 'Customer orders are brisk in the face of significant price increases, while we continue to struggle with inbound supplier service and raw material availability issues.'
   [Chemical Products]
  

 

• 'Generally speaking, the business environment is slowly improving for aerospace component manufacturers. Supply chain disruptions and still-extending lead times continue to keep purchasing busy. This further causes reevaluation of the current year’s business plan and cost assumptions.'
   [Transportation Equipment]
  

 

• 'Overall business conditions are challenging in both domestic and international transportation. The Russian invasion of Ukraine has created uncertainty in the grain markets, causing upward pricing pressure. In addition, inflationary pressures across all categories have made it challenging to manage cost and profitability.'
   [Food, Beverage + Tobacco Products]
  

 

• 'Prices are increasing on steel and steel products after a slight decrease from highs last month. Transportation costs are going up significantly with the increase in fuel prices.'
   [Machinery]
  

 

• 'Backlog continues to be strong as we ship delinquent orders resulting from COVID-19 slowdowns.' [Fabricated Metal Products]
  'Demand continues to be strong. Backlog is still increasing -- currently at about three months of production. Availability of purchased material continues to constrain production, causing the increased backlog.'
   [Electrical Equipment, Appliances + Components]
  

 

• 'Business continues to be strong, with incoming sales higher but still combating labor and material issues like availability and inflation. Still determining impact of the Russian invasion of Ukraine.'
   [Furniture + Related Products]
  

 

• 'The supply situation is getting worse, with lead times extending over 12 months, material not available, and suppliers not quoting or taking orders. Prices on the rise daily.'
   [Miscellaneous Manufacturing]
  

 

• 'Supply chain is still unstable. While we have seen improvements, there are still a lot of issues that have yet to be resolved.'
   [Primary Metals]..."

==========

CHART: ISM Manufacturing Index
March 2022 Update

=========

• Click here to view the complete ISM report

=========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Non-Manufacturing Index (NMI®) for February 2022

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for February 2022:

==========

Predicted: 60.0%

• Actual: 56.5%  (-3.4 points month-on-month change)

==========

Previous month (revised): 59.9%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service Categories Include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

==========

From today' report:

"...Economic activity in the services sector grew in February for the 21st month in a row -- with the Services PMI® registering 56.5 percent -- say the nation’s purchasing and supply executives in the latest Services ISM® Report On Business®..."

===========

Here's a sampling of comments made by survey participants:

• "...'Raw material increases, labor shortages, wage increases and transportation issues are still the primary issues affecting our operations and pricing.'
   [Accommodation + Food Services]
  

 

• 'Supply chain challenges continue to result in lower inventories of products and higher costs. The challenges are at the highest point since COVID-19 began.'
   [Agriculture, Forestry, Fishing + Hunting]
  

 

• 'We are projecting 2022 to be busier than 2021. Our business volume should begin to increase significantly in March.'
   [Arts, Entertainment + Recreation]
  

 

• 'We are getting price increases with no notice. For example, our engineered wood products supplier gave us a 10 percent to 20 percent (based on SKU) increase, effective immediately. We are also struggling to get materials. Suppliers cite poor employee attendance, elevated employee turnover and positions open longer than normal as they struggle to fill them.'
   [Construction]
  

 

• 'Inflation is contributing to budget constraints, supply chain restraints and labor shortages.'
   [Educational Services]
  

 

• 'Employee turnover within our company and with our suppliers is causing delays in decisions and orders.'
   [Finance + Insurance]
  

 

• 'As the COVID-19 surge starts to loosen its grip, we are planning to resume elective surgeries soon. Demand is still high, as these procedures were delayed while the surge was occurring.'
   [Health Care + Social Assistance]
  

 

• 'Business has flattened but holding steady.'
   [Information]
  

 

• 'Staffing shortages, supply chain disruptions and rising inflation continue to impact the world economy. Companies are struggling to hire direct employees and non-employee labor because wages continue to increase for both. The Great Resignation is real: Employees, contractors and consultants continue to quit their jobs and engagements for opportunities that pay more and have more flexible work options. Millions of light industrial jobs remain open in the U.S., with limited interest from job seekers. Severe labor shortages are expected well into 2022. Corporations need to increase wages and salaries to attract talent and get work done. Faster wage growth is expected to lead to increased inflation.'
   [Professional, Scientific + Technical Services]
  

 

• 'Appear to be on the upswing from COVID-19 from an absenteeism standpoint. Still dealing with long lead times for wire, polyvinyl chloride (PVC), steel, transformers and meters. Winter weather has not had an impact on productivity levels.'
   [Utilities]
  
  

===========

• Click here to view the complete ISM report

==========

 

CHART: ISM Non-Manufacturing (Services) Index (NMI®)
12 Month History - February 2022 Update 

==========

 

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Manufacturing Index for February 2022

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for February 2022:

=========

Predicted: 58.0%

• Actual: 58.6% (+1.0 point month-on-month change)

=========

Previous month (revised): 57.6%

=========

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 made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector grew in February, with the overall economy achieving a 21st consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."

=========

The Following Is A Sampling Of Quotes
From A Diverse Pool Of U.S. Manufacturers:

• "...'Electronic supply chain is still a mess.'
   [Computer + Electronic Products]
  

 

• 'Strong sales growth as retail continues to return.'
   [Chemical Products]
  

 

• 'Demand for transportation equipment remains strong. Supply of transportation services continues to be a major issue for the supply chain.'
   [Transportation Equipment]
  

 

• 'Strong demand has continued beyond our traditional seasonality curves. Coupled with the continuing difficulties in procurement of ocean freight, operational planning and managing costs are our biggest challenges.'
   [Food, Beverage + Tobacco Products]
  

 

• 'We have seen year-over-year revenue growth of about 10 percent due to markets coming back. However, in the automotive area, the microchip shortage is causing slowness in growth.'
   [Machinery]
  

 

• 'Demand for steel products has increased to historic levels, driven by the automotive and energy industries.'
   [Fabricated Metal Products]
  

 

• 'We are expecting a year of strong demand, higher prices and continued supply chain challenges.'
   [Textile Mills]
  

 

• 'Demand continues to be strong, increasing our backlog. Production has been more consistent due to availability of parts, but we are not able to increase builds to cut into the backlog.'
   [Electrical Equipment, Appliances + Components]
  

 

• 'Business conditions are good, demand remains strong, and we continue to be challenged to keep up with demand.'
   [Miscellaneous Manufacturing]
  

 

• 'Business is still strong. Facing logistics and raw material supply chain issues with some products.'
  [Plastics + Rubber Products]..."

 =========

CHART: ISM Manufacturing Index
February 2022 Update

=========

• Click here to view the complete ISM report

=========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Non-Manufacturing Index (NMI®) for January 2022

Earlier today, the Institute for Supply Management (ISM®) released their Non-Manufacturing Index (NMI®) for January 2022:

==========

Predicted: 60.0%

• Actual: 59.9%  (-2.4 points month-on-month change)

==========

Previous month (revised): 62.3%

==========

The NMI is a reliable barometer of the U.S. services sector; above 50% implies expansion, while a reading below 50% implies that the services sector contracted.

Service Categories Include: Agriculture, Forestry, Fishing + Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation + Warehousing; Information; Finance + Insurance; Real Estate, Rental + Leasing; Professional, Scientific + Technical Services; Management of Companies + Support Services; Educational Services; Health Care + Social Assistance; Arts, Entertainment + Recreation; Accommodation + Food Services; Public Administration; and Other Services (services such as Equipment + Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning + Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).

==========

From today' report:

"...Economic activity in the services sector grew in January for the 20th month in a row, with the Services PMI® registering 59.9%, say the nation's purchasing and supply executives in the latest Services ISM® Report On Business®..."

===========

Here's a sampling of comments made by survey participants:

• "Supply constraints and outages persist. With mechanical component parts, the problems are severe. We are finding widespread depletion of field service part inventories to sustain factory production of new product orders. The inability to satisfy replacement part demand creates tremendous operational risk."
   [Accommodation & Food Services]
  

 

• "Challenging operating conditions remain the same to start the new year. Our biggest service providers seem to be rebounding from labor shortages or are managing their way through them. We will be forced to upgrade some equipment that is less reliant on labor."
   [Agriculture, Forestry, Fishing & Hunting]
  

 

• "Costs have escalated to what we believe are unsustainable levels. Available labor is nonexistent, so we have cut staffing and are taking on fewer projects temporarily in an attempt to reduce cost. Outsourcing where possible. We are not optimistic at this time."
   [Construction]
  

 

• "Business activity is increasing, but professional labor continues to be in short supply. Virtual work is preferred by clients."
   [Finance & Insurance]
  

 

• "COVID-19 inpatient stays have surged in the past 30 days; however, this past week, the numbers have trended slightly down. Supply chain disruptions continue. Hiring of clinical and nonclinical staff continues to be very difficult due to high demand. Some staff are still working remotely."
   [Health Care & Social Assistance]
  

 

• "January has been tough, as product quantities intended for holiday sales are just now coming in, inventories of seasonal products are (very) high and now dormant for nine months, cash flow is down, and new orders are delayed. Omicron is keeping between 20 and 25 percent of our workforce out daily. Inflation is a concern."
   [Information]
  

 

• "Downturn in business in the last month due to outbreak in COVID-19 cases."
   [Other Services]
  

 

• "Blood shortages are causing issues in the emergency rooms."
   [Professional, Scientific & Technical Services]
  

 

• "Business outlook remains cautiously optimistic, although uncertainty remains concerning the impact of omicron, inflation and the lack of major improvements to supply chain issues."
   [Retail Trade]
  

 

• "Business activity is very high, and we have maintained a consistent amount of back orders. Labor constraints are presenting problems throughout all areas of the business."
   [Utilities]
  

 

• "Constrained supplies of many key product groups continue. Inflation worsening; however, sales and profitability continue to be strong."
   [Wholesale Trade]
  

===========

• Click here to view the complete ISM report

==========

 

CHART: ISM Non-Manufacturing (Services) Index (NMI®)
12 Month History - January 2022 Update

==========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <

ISM Manufacturing Index for January 2022

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for January 2022:

=========

Predicted: 58.0%

• Actual: 57.6% (-1.2 points month-on-month change)

=========

Previous month (revised): 58.8%

=========

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 made-in-the-USA sector contracted.

=========

From Today's Report:

"...Economic activity in the manufacturing sector grew in January, with the overall economy achieving a 20th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."

 =========

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

• "...'We are experiencing massive interruptions to our production due to supplier COVID-19 problems limiting their manufacturing of key raw (materials) like steel cans and chemicals.'
   [Chemical Products]
  

 

•  'While there has been some improvement in materials making it to our factories and logistics centers, we are still constrained by (a lack of) qualified labor. Orders so far are not being cancelled, but we are concerned that customers may be losing patience.'
   [Computer + Electronic Products]
  

 

•  'Transportation, labor and inflation issues continue to hamper our supply chain and ability to service our customers. Fortunately, it’s also hampering our competition as well. Ultimately, the biggest impact is at the consumer level, as (price increases) continue to get passed through.'
   [Transportation Equipment]
  

 

•  'Our suppliers are having difficulty meeting scheduled releases as their suppliers experience delays and shortages, so lead times and inventories are struggling, resulting in lost production.'
   [Food, Beverage + Tobacco Products]
  

 

•  'Lack of skilled production personnel, either from missing work due to (COVID-19) variants or leaving for better opportunities, making it more difficult to complete work. Working off a backlog.'
   [Fabricated Metal Products]
  

 

•  'Strong backlog of orders coming into the new year. Potential to beat target revenue, depending on availability of purchased product.'
   [Electrical Equipment, Appliances + Components]
  

 

•  'Bookings continue to increase as we are still dealing with a shortage of labor and supply chain issues.'
   [Furniture + Related Products]
  

 

•  'Transportation restrictions and a lack of supplier manpower continue to create significant shortages that limit our production. This, in turn, limits what we can supply to customers, as well as on-time delivery.'
   [Machinery]
  

 

•  'Integrated circuit availability is really causing issues. Shortages of raw materials and other electronic materials continue to hamper deliveries to our customers.'
   [Miscellaneous Manufacturing]
  

 

•  'The supply chain crunch may be loosening a bit; however, specific original equipment manufacturer (OEM) parts and equipment now have lead times that we have not experienced before.'
   [Nonmetallic Mineral Products]..."

 =========

 
 CHART: ISM Manufacturing Index
January 2022 Update

=========

• Click here to view the complete ISM report

=========

--> www.FedPrimeRate.com Privacy Policy <-- >  SITEMAP  <