ISM Manufacturing Index - release 10:00 am

January 2010 Manufacturing ISM Report On Business^®

PMI at 58.4%

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 January 2010.
This report reflects the U.S. Department of Commerce's recently completed annual adjustment to the seasonal factors used to calculate the indexes.

New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slower

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in January for the sixth consecutive month, and the overall economy grew for the ninth 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, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The manufacturing sector grew for the sixth consecutive month in January as the PMI rose to 58.4 percent, its highest reading since August 2004 when it registered 58.5 percent. This month's report provides significant assurance that the manufacturing sector is in recovery. Both the New Orders and Production Indexes are above 60 percent, indicating strong current and future performance for manufacturing. This month, 13 of 18 industries reported growth, up from nine industries last month, and this is a good indication that the impact of the recovery is expanding."

PERFORMANCE BY INDUSTRY

The 13 manufacturing industries reporting growth in January — listed in order — are: Apparel, Leather & Allied Products; Textile Mills; Machinery; Miscellaneous Manufacturing; Transportation Equipment; Paper Products; Nonmetallic Mineral Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Wood Products; Fabricated Metal Products; and Plastics & Rubber Products. Furniture & Related Products is the only industry reporting contraction in January.

WHAT RESPONDENTS ARE SAYING ...

• "Commodity prices are moving up again." (Printing & Related Support Activities)
• "We now believe that we will not have a good upturn until the 3rd quarter of 2010." (Primary Metals)
• "Overall activity is significantly higher than we typically see this time of year." (Machinery)
• "Orders from automotive very strong." (Electrical Equipment, Appliances & Components)
• "Lead times continue to be a problem for electronic components." (Computer & Electronic Products)

Full report here.
*Number of months moving in current direction.
Indexes reflect newly released seasonal adjustment factors.

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price

Aluminum (7); Aluminum Products (2); Brass; Copper (8); Copper Based Products (7); Corrugated Containers; Diesel Fuel; Natural Gas; Nickel; Plastics; Plastic Resins; Polypropylene (2); Stainless Steel; Stainless Steel Products; Steel (7); Steel Products; and Zinc.

Commodities Down in Price

No commodities are reported down in price.

Commodities in Short Supply

No commodities are reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.