Weather or not, PMI Index hits the skids in January

PMI Index drops to 51.3%, lowest mark in seven months, mostly due to poor weather


Manufacturing output plunged with the cold weather in January, as the monthly Institute for Supply Management PMI Index plunged 5.2 percentage points to its lowest point since May 2013, and analysts and industry experts gave part of the blame to the brutal winter weather throughout much of the country.

While the 51.3% PMI figure still represents growth overall for the manufacturing sector, it was a significant step back for the index, which was at 56.5% in December and has hovered above 56.0% for the last five months.

The report, released Feb. 3, shows steps back across all areas of the index. The New Order Index plummeted from 64.4% to 51.2%, and the Production Index dropped from 61.7% to 54.8%.

“A number of comments from the panel cite adverse weather conditions as a factor negatively impacting their businesses in January, while others reflect optimism and increasing volumes in the early stages of 2014,” said Bradley J. Holcomb, CPSM, CPSD, chairman of the Institute for Supply Management Manufacturing Business Survey Committee.

Survey participants remained generally upbeat about the state of manufacturing. Among the comments:

  • "We are seeing slight improvements, year-over-year, month-to-month, across most regions and business segments."
  • "Poor weather impacted outbound and inbound shipments."
  • "Good finish to 2013, but slow start to 2014, mostly attributed to weather." (Petroleum & Coal Products)
  • "U.S. government aerospace business is very brisk."
  • "We have experienced many late deliveries during the past week due to the weather shutting down truck lines." (Plastics & Rubber Products)
  • "We continue to be busy, working six days, 24 hours a day."

The Institute for Supply Management's monthly PMI Index dropped to 51.3%, the lowest mark in seven months, mostly due to poor weather throughout the United States. Courtesy: ISMThere was one small, but significant adjustment in the overall PMI for 2013. In May 2013, the index was reported at 49.0%, a figure that is below the 50% threshold that would indicate manufacturing growth for that month. In the figures released Feb. 3, the May figure was adjusted to 50%, exactly at the level for growth. At the same time, the PMI for April was seasonally adjusted down from 50.7% to 50%. The result is 12 months of a PMI Index at or above the growth rate.

As it corresponds to overall economic growth, this month’s PMI marks the 56th straight month of economic growth. “The past relationship between the PMI and the overall economy indicates that the PMI for January corresponds to a 2.7% increase in real gross domestic product (GDP) on an annualized basis.”

STAN , MA, United States, 02/05/14 07:36 AM:

All the positive comments may make the Dems feel better ,however the economy is still in the toilet.Actual unemployment around ii% when you factor in partimers and those who have given up.
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 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...
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
2015 Mid-Year Report: Manufacturing's newest tool: In a digital age, digits will play a key role in the plant of the future; Ethernet certification; Mitigate harmonics; World class maintenance
2015 Lubrication Guide: Green and gold in lubrication: Environmentally friendly fluids and sealing systems offer a new perspective
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Cyber security attack: The threat is real; Hacking O&G control systems: Understanding the cyber risk; The active cyber defense cycle
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths
New industrial buildings: Greener, cleaner, leaner; New building designs for industry; Take a new look at absorption cooling; Offshored jobs start to come back

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

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.