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Monday, March 2, 2009

February 2009 Manufacturing ISM Report On Business®

PMI at 35.8%
*up from 35.6%. I suppose that is a bright spot

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of February 2009.

New Orders, Production, Employment and Inventories Contracting
Prices Falling
Supplier Deliveries Faster

(Tempe, Arizona) — Economic activity in the manufacturing sector failed to grow in February for the 13th consecutive month, and the overall economy contracted for the fifth 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 Management™ Manufacturing Business Survey Committee. "Manufacturing continues to decline at a rapid rate in February. While production has slowed its rate of decline, employment continues to fall precipitously. Prices continue to decline, but price advantages are not sufficient to overcome manufacturers' apparent loss of demand. Survey respondents appear generally pessimistic about recovery in 2009. Some express hope that the stimulus package will help their industry."

None of the 18 manufacturing industries reported growth. The industries reporting contraction in February — listed in order — are: Primary Metals; Wood Products; Electrical Equipment, Appliances & Components; Furniture & Related Products; Paper Products; Textile Mills; Fabricated Metal Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Chemical Products; Machinery; Transportation Equipment; Computer & Electronic Products; Petroleum & Coal Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; and Food, Beverage & Tobacco Products.

"Customers across the board are being very cautious about ordering any stock." (Transportation Equipment)
"Business is very slow, some of which is due to seasonality, and some is due to the state of the economy." (Chemical Products)
"Asia previously was over 50 percent of our business and is now close to zero." (Machinery)
"Still seeing frequent attempts at increases while everything is reacting to an economy that is retracting." (Food, Beverage & Tobacco Products)
"Business slightly improved in February. May be the result of inventories finally coming into balance with lower demand." (Paper Products) more...

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