PMI™ at 57%; December Manufacturing ISM Report On Business®; New Orders, Production and Employment Growing; Inventories Contracting; Supplier Deliveries Slowing

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price
#1 Busheling Scrap; Corrugated Packaging; Galvanized Steel; Methanol; Plastic Resins; Stainless Steel; Steel; Steel — HRPO; Steel — Hot Rolled (2); and Wood (2).

Commodities Down in Price
Aluminum (2); Brass; Corn Based Products (2); Fuel (2); Hydraulic Components; MRO Supplies; and Office Supplies.

Commodities in Short Supply
No commodities are reported in short supply.

Note: The number of consecutive months the commodity is listed is indicated after each item.

DECEMBER 2013 MANUFACTURING INDEX SUMMARIES

PMI™

Manufacturing expanded in December as the PMI registered 57 percent, a decrease of 0.3 percentage point when compared to November's reading of 57.3 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 42.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the December PMI indicates growth for the 55th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the seventh consecutive month. Holcomb stated, "The past relationship between the PMI and the overall economy indicates that the average PMI for January through December (53.9 percent) corresponds to a 3.7 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for December (57 percent) is annualized, it corresponds to a 4.6 percent increase in real GDP annually."

THE LAST 12 MONTHS

Month

PMI


Month

PMI

Dec 2013

57.0


Jun 2013

50.9

Nov 2013

57.3


May 2013

49.0

Oct 2013

56.4


Apr 2013

50.7

Sep 2013

56.2


Mar 2013

51.3

Aug 2013

55.7


Feb 2013

54.2

Jul 2013

55.4


Jan 2013

53.1

Average for 12 months – 53.9

High – 57.3

Low – 49.0

New Orders

ISM's New Orders Index registered 64.2 percent in December, an increase of 0.6 percentage point when compared to the November reading of 63.6 percent. This represents growth in new orders for the seventh consecutive month, at a faster rate than in November. A New Orders Index above 52.2 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).

The 11 industries reporting growth in new orders in December — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Computer & Electronic Products; Primary Metals; Machinery; Transportation Equipment; Miscellaneous Manufacturing; and Chemical Products. The only industry reporting a decrease in new orders during December is Nonmetallic Mineral Products. Six industries reported no change in new orders in December compared to November.

New Orders

%Better

%Same

%Worse

Net

Index

Dec 2013

34

52

14

+20

64.2

Nov 2013

36

46

18

+18

63.6

Oct 2013

29

54

17

+12

60.6

Sep 2013

32

53

15

+17

60.5

Production

ISM's Production Index registered 62.2 percent in December, which is a decrease of 0.6 percentage point when compared to the 62.8 percent reported in November. This month's reading indicates growth in production for the seventh consecutive month, at a slightly slower rate than in November. An index above 51.2 percent, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.

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