Institute for Supply Management Index
December 4th, 2011
The Purchasing Managers' Index, or PMI, from the Institute of Supply Management rose to 61.4%, as economists were expecting a dip. A reading greater than 50 on the index signals growth, and this reading this month indicates that manufacturing in the US expanded at its fastest pace since May 2004 as industrials continue to lead the economic recovery.
The report showed that new orders are growing significantly faster than inventories, and indicates that inventories will require continuing replenishment. The employment component of the index is above 60 as well, and this has only happened three times in the last decade. However, industries relating to housing continue to struggle and the prices paid component shows that there is significant inflation in raw material costs across the board. New orders and production were the biggest contributors to the pickup in activity on the back of strong growth in exports.
Categories: News
