ISM data showed manufacturing accelerated in Dec. 2011
PMI jumped to 53.9% in latest survey, finished 2011 on the upswing.
Source: Institute for Supply Management (ISM)
Economic activity in the manufacturing sector expanded in December for the 29th consecutive month, and the overall economy grew for the 31st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report on Business.
The purchasing managers index (PMI) registered 53.9%, an increase of 1.2 percentage points from November's reading of 52.7%, indicating expansion in the manufacturing sector for the 29th consecutive month. The New Orders Index increased 0.9 percentage points from November to 57.6%, reflecting the third consecutive month of growth after three months of contraction.
Prices of raw materials continued to decrease for the third consecutive month, with the Prices Index registering 47.5%, which is 2.5% age points higher than the November reading of 45%.
Manufacturing is finishing out the year on a positive note, with new orders, production and employment all growing in December at faster rates than in November, and with an optimistic view toward the beginning of 2012 as reflected by the panel in this month's survey,” said Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
Manufacturing continued its growth in December as the PMI registered 53.9%, an increase of 1.2 percentage points when compared to November's reading of 52.7%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
A PMI in excess of 42.5%, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the 31st consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 29th consecutive month.
"The past relationship between the PMI and the overall economy indicates that the average PMI for January through December (55.3% ) corresponds to a 4.5% increase in real gross domestic product,” said Holcomb. “In addition, if the PMI for December (53.9%) is annualized, it corresponds to a 4% increase in real GDP annually."
Edited by Amanda McLeman, Managing Editor, Plant Engineering.
- Related News:
March ISM report: Full speed ahead on growth - 03.04.2012 11:22- ISM: Manufacturing growth continues, but slows - 02.03.2012 10:34
- ISM: Manufacturing index rises in November - 09.12.2011 09:17
- ISM report shows manufacturing slowly grows - 15.11.2011 07:00
- ISM number slip, but growth continues - 09.05.2011 14:43
Case Study Database
Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.
These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.
Click here to visit the Case Study Database and upload your case study.
2012 Salary Survey
In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.
Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.