ISM Fremstilling :
The December PMI® registered 48.2 percent, a decrease of 0.4 percentage point from the November reading of 48.6 percent. The New Orders Index registered 49.2 percent, an increase of 0.3 percentage point from the reading of 48.9 percent in November. The Production Index registered 49.8 percent, 0.6 percentage point higher than the November reading of 49.2 percent. The Employment Index registered 48.1 percent, 3.2 percentage points below the November reading of 51.3 percent.
The Prices Index registered 33.5 percent, a decrease of 2 percentage points from the November reading of 35.5 percent, indicating lower raw materials prices for the 14th consecutive month. The New Export Orders Index registered 51 percent, up 3.5 percentage points from the November reading of 47.5 percent and the Imports Index registered 45.5 percent, down 3.5 percentage points from the November reading of 49 percent. As was the case in November, 10 out of 18 manufacturing industries reported contraction in December.
Contraction in new orders, production, employment and raw materials inventories accounted for the overall softness in December.”
Of the 18 manufacturing industries, six are reporting growth in December in the following order: Printing & Related Support Activities; Textile Mills; Paper Products; Miscellaneous Manufacturing; Chemical Products; and Food, Beverage & Tobacco Products. The 10 industries reporting contraction in December — listed in order — are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Primary Metals; Fabricated Metal Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Wood Products; and Nonmetallic Mineral Products.
WHAT RESPONDENTS ARE SAYING …
- “Low oil prices are negatively impacting oil and gas exploration activities. Low oil prices are generally positive for the petrochemical industry.” (Petroleum & Coal Products)
- “Month-over-month sales were down, profitability up.” (Chemical Products)
- “December revenue is flat compared to last month.” (Computer & Electronic Products)
- “Still very slow due to oil prices.” (Fabricated Metal Products)
- “Deflation in many commodities is helping with product savings. Sales are strong with a backlog.” (Transportation Equipment)
- “Targeting reduced inventories for raw materials by year-end.” (Textile Mills)
- “Sales have dropped and continue to be soft. This is resulting in [a] reduction in workforce and furloughs.” (Apparel, Leather & Allied Products)
- “Medical device business continues to be strong, both in the U.S. and abroad.” (Miscellaneous Manufacturing)
- “Business is going well. Low fuel prices keep full size SUV and truck sales at high volumes.” (Plastics & Rubber Products)
- “Customers are tightening their inventories for year-end, impacting our sales and shipments.” (Food, Beverage & Tobacco Products)
| MANUFACTURING AT A GLANCE DECEMBER 2015 | ||||||
|---|---|---|---|---|---|---|
| Index | Series Index Dec | Series Index Nov | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| PMI® | 48.2 | 48.6 | -0.4 | Contracting | Faster | 2 |
| New Orders | 49.2 | 48.9 | +0.3 | Contracting | Slower | 2 |
| Production | 49.8 | 49.2 | +0.6 | Contracting | Slower | 2 |
| Employment | 48.1 | 51.3 | -3.2 | Contracting | From Growing | 1 |
| Supplier Deliveries | 50.3 | 50.6 | -0.3 | Slowing | Slower | 5 |
| Inventories | 43.5 | 43.0 | +0.5 | Contracting | Slower | 6 |
| Customers’ Inventories | 51.5 | 50.5 | +1.0 | Too High | Faster | 5 |
| Prices | 33.5 | 35.5 | -2.0 | Decreasing | Faster | 14 |
| Backlog of Orders | 41.0 | 43.0 | -2.0 | Contracting | Faster | 7 |
| Exports | 51.0 | 47.5 | +3.5 | Growing | From Contracting | 1 |
| Imports | 45.5 | 49.0 | -3.5 | Contracting | Faster | 3 |
| OVERALL ECONOMY | Growing | Slower | 79 | |||
| Manufacturing Sector | Contracting | Faster | 2 | |||
