August Manufacturing Report

September 2nd, 2008 at 10:47am Bob Trojan

Economic activity in the manufacturing sector failed to grow in August, while the overall economy grew for the 82nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business^®.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Managementâ„¢ Manufacturing Business Survey Committee. “The PMI indicates a slight decline in manufacturing during August. This continues the 2008 trend toward negligible growth or contraction each month, but ultimately results in very little overall change in the sector. This month’s report is showing the first signs of lower prices as the Prices Index fell significantly, though still at an inflationary level. Export orders picked up additional momentum, and that is important to manufacturers as domestic demand remains soft for most industries.”

PERFORMANCE BY INDUSTRY

The five industries reporting growth in August — listed in order — are: Paper Products; Computer & Electronic Products; Miscellaneous Manufacturing; Apparel, Leather & Allied Products; and Chemical Products. The industries reporting contraction in August are: Wood Products; Plastics & Rubber Products; Fabricated Metal Products; Transportation Equipment; Furniture & Related Products; Machinery; and Primary Metals.

WHAT RESPONDENTS ARE SAYING …

• “Business is picking up and continues to improve for projects to be constructed in 3rd and 4th quarters 2008.” (Electrical Equipment, Appliances & Components)
• “The lower oil prices and stronger dollar are good news.” (Fabricated Metal Products)
• “We are contracting our manufacturing skills to companies involved in wind power, coal mining and other energy fields in order to ride the recessionary wave in the rust belt.” (Machinery)
• “Material prices continue to rise; however, selling prices of our products have risen as well.” (Paper Products)
• “Prices remain predictable … they keep going up.” (Food, Beverage & Tobacco Products)

Read the rest of the report….

http://www.ism.ws/ISMReport/MfgROB.cfm

Entry Filed under: Economy