Report shows ongoing growth in U.S. manufacturing sector
Tempe, AZ -- Economic activity in the U.S. manufacturing sector grew in November 2003 for the fifth consecutive mon...
Tempe, AZ — Economic activity in the U.S. manufacturing sector grew in November 2003 for the fifth consecutive month, while the overall economy grew for the 25th consecutive month, U.S. supply industry executives said in the latest Manufacturing ISM Report On Business.
The report was issued by the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. It said the manufacturing sector enjoyed its best month since December 1983. The big improvement was in employment as the index rose above 50%, indicating growth, following 37 consecutive months of decline. The momentum is coming from continued strength in new orders and production as the indexes are presently at very lofty levels.”
ISM’s Backlog of Orders Index indicates that order backlogs increased in November, and the Employment Index reversed a long-term trend of contraction as it indicates growth during the month. ISM’s Prices Index indicates that manufacturers experienced higher prices in their purchases. The New Export Orders and Import Indexes continued to grow.
Comments from purchasing and supply managers were more upbeat as various industry segments were starting to see improvement. While overall employment appears to be improving, respondents still mention current or impending layoffs. Several indicated transferring production of product lines to offshore manufacturing.
Of the 20 industries in the manufacturing sector, 18 industries reported growth: Instruments & Photographic Equipment; Glass, Stone, & Aggregate; Leather; Electronic Components & Equipment; Tobacco; Industrial & Commercial Equipment & Computers; Primary Metals; Food; Transportation & Equipment; Fabricated Metals; Wood & Wood Products; Textiles; Furniture; Miscellaneous*; Printing & Publishing; Chemicals; Apparel; and Rubber & Plastic Products.