PMI jumps to highest level in 2013 as growth accelerates

Manufacturing Index hits 55.7% in August to extend growth streak

09/03/2013


Manufacturing’s summer surge continued in August, as the monthly ISM Report rose for the third straight month to its highest level of 2013.

The Institute for Supply Management’s PMI for August was at 55.7%, an increase of 0.3 percentage points from July’s high-water mark and the tenth increase in the last 12 months. Since the PMI fell to a regressive level of 49.0% in May, the PMI has climbed almost 7 percentages points to reach a new high for the past 12 months. A figure above 50% indicates general growth for manufacturing. A figure above 43.2% indicates growth for the general economy, so August’s figure marked the 51st consecutive month of economic growth.

All major indicators were positive for August, according to Bradley Holcomb, chairman of the ISM Business Survey Committee. “The Prices Index registered 54%, increasing 5 percentage points from July, indicating that overall raw materials prices increased when compared to last month. Comments from the panel range from slow to improving business conditions depending upon the industry,” Holcomb said.

The Institute for Supply Management's Manufacturing Index hits 55.7%, the highest so far in 2013, in August to extend growth streak. Courtesy: ISMThe New Orders Index rose 4.9 percentage points in August to 63.2%, its highest level of the year, and manufacturers sounded optimistic about future prospects. Among the comments from survey participants:

  • "Slight improvements in both domestic and international sales." (Fabricated Metal Products)
  • "Material prices continue to be favorable; business is steady." (Paper Products)
  • "Slowing down slightly, but still stronger than last year by 20%." (Furniture & Related Products)
  • "Summer seasonal businesses are doing well after a late start." (Printing & Related Support Activities)
  • "Still not seeing the year we had expected. Cautious about the balance of 2013." (Machinery)
  • "Tight government spending still affecting business." (Transportation Equipment)
  • "With improved weather outlook in the central states, agricultural prices are relaxing year over year." (Food, Beverage & Tobacco Products)
  • "We have benefitted from the Yen; seeing a 20 percent decrease in material costs from 2012 to 2013." (Chemical Products)

"The past relationship between the PMI and the overall economy indicates that the average PMI for January through August (52.5%) corresponds to a 3.2% increase in real gross domestic product on an annualized basis,” Holcomb said. “In addition, if the PMI for August (55.7%) is annualized, it corresponds to a 4.2% increase in real GDP annually.”

The Last 12 Months

The Institute for Supply Management's Manufacturing Index hits 55.7%, the highest so far in 2013, in August to extend growth streak. Courtesy: ISM



Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
October 2018
Tools vs. sensors, functional safety, compressor rental, an operational network of maintenance and safety
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
July/Aug
GAMS preview, 2018 Mid-Year Report, EAM and Safety
October 2018
2018 Product of the Year; Subsurface data methodologies; Digital twins; Well lifecycle data
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, programming cavity pumps
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
October 2018
Complex upgrades for system integrators; Process control safety and compliance
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me