ISM Report: October manufacturing continues autumn rebound
ISM data shows manufacturing grew for second straight month as new orders, production jumps
In the final report before the 2012 elections, the Institute for Supply Management reported Nov. 1 that manufacturing continued to improve from the summer slump and continued to grow at a steady rate.
The ISM report’s PMI index rose to 51.7% in October, up slightly from the 51.5% in September and above the 50% threshold for manufacturing growth. In addition, the index showed the economy as a whole grew for the 41st consecutive month.
“Comments from the panel this month reflect continued concern over a fragile global economy and soft orders across several manufacturing sectors," said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
Other indices also were up in October, the second straight month of increases after a three-month stretch from June to August where the manufacturing rate hovered just below 50%.
The New Orders Index registered 54.2%, an increase of 1.9 percentage points from September. The Production Index registered 52.4%, an increase of 2.9 percentage points. On the other side of the equation, the Employment Index registered 52.1%, a decrease of 2.6 percentage points, and the Prices Index registered 55%, reflecting a decrease of 3 percentage points.
Respondents are concerned about the situation in Europe and Asia, while seeing firming demand in the U.S. Among the comments:
- "Market is still very soft." (Paper Products)
- "Business is picking up." (Furniture & Related Products)
- "[Our] 4th quarters usually begin to show a slowdown in demand, and this year is no different; prices are also dropping." (Wood Products)
- "Demand down slightly due to customers pre-buying ahead of announced material price increases." (Plastics & Rubber Products)
- "The slowing of capital expenditure in Europe and China has lowered our backlog for Q4." (Computer & Electronic Products)
- "Europe is still very much a concern. Global recovery is still fragile." (Chemical Products)
THE LAST 12 MONTHS
Month
| PMI
|
| Month
| PMI
|
Oct 2012
| 51.7
|
| Apr 2012
| 54.8
|
Sep 2012
| 51.5
|
| Mar 2012
| 53.4
|
Aug 2012
| 49.6
|
| Feb 2012
| 52.4
|
Jul 2012
| 49.8
|
| Jan 2012
| 54.1
|
Jun 2012
| 49.7
|
| Dec 2011
| 53.1
|
May 2012
| 53.5
|
| Nov 2011
| 52.2
|
Average for 12 months – 52.2
| ||||
- Related News:
PMI Index jumps to nine-month high - 01.02.2013 10:40- ISM manufacturing index ends 2012 above growth mark - 07.01.2013 09:17
- Manufacturing contracts in November, ISM reports - 04.12.2012 16:04
- Manufacturing growth rebounds after summer slump - 02.10.2012 10:00
- ISM Report: PMI hovers below break-even again in August - 07.09.2012 14:30
- ISM Report: Manufacturing slumps for second straight month - 02.08.2012 09:44
- ISM report: Manufacturing growth expands in April - 02.05.2012 10:46
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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.