PMI shows growth for third straight month

Manufacturing index climbs 0.5 percentage points to 51.3% to continue positive streak.


The Institute for Supply Management's (ISM) monthly Purchasing Manufacturers' Index (PMI) continued its growth trend for the third straight month in May. Image courtesy: CFE MediaLed by continued strength in new orders and production, the Institute for Supply Management's (ISM) monthly Purchasing Manufacturers' Index (PMI) continued its growth trend for the third straight month in May. The PMI reached 51.3%, an increase of 0.5 percentage points from April.

The PMI dipped below the 50% growth threshold in October 2015 and stayed there until a 51.8% reading in March. The increase in May's Index also brought the 12-month average for the PMI to 50.3%, indicating slow but steady growth for the manufacturing sector.

The New Orders Index was down 0.1 percentage points in May, but still at a solid 55.7%. The Production Index also slid 1.6 percentage points, but the overall 52.6% reading also was solid. Prices for raw materials climbed for the third straight month, jumping 4.0 percentage points to 63.5%.

Members of the Institute for Supply Management's Manufacturing Business Survey Committee generally were optimistic about the domestic and global outlook.

Among the comments:

  • "Business conditions remain strong with the exception of South America. Continued expectation for a strong year even with the headwinds of currency and economic slowdown." (Food, Beverage & Tobacco Products)
  • "Consistent sales growth in greater China, North Asia, Southeast Asia, Canada and Mexico. Flat for the Americas and Europe." (Chemical Products)
  • "Slowdown in Chinese economy causing low orders." (Computer & Electronic Products)
  • "Continued brisk order flow for our business." (Fabricated Metal Products)
  • "Steady to slightly up production rates vs. prior month." (Machinery)
  • "Business is still good, but slowing." (Transportation Equipment)
  • "Business conditions are stable; demand is steady for our products." (Miscellaneous Manufacturing)
  • "Our business remains to be strong, but many of my suppliers are telling me their business is flat." (Plastics & Rubber Products)
  • "Oil & Gas continues to struggle to meet cost controls required in the new low-oil price environment." (Petroleum & Coal Products)
  • "Market is improving steadily in both orders and pricing." (Wood Products)

The PMI passed another milestone in May's report. By maintaining an Index level above 43.2%, which is the threshold for overall economic growth, May marked seven consecutive years of expansion in the U.S. economy.

Bob Vavra, content manager, Plant Engineering, CFE Media,

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me