“The February PMI® registered 54.2 percent, an decrease of 2.4 percentage points from the January reading of 56.6 percent…Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 118th consecutive month.“- Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee
While the expectation was for 55 or more, and so many folks were disappointed at this slower rate of growwth in manufacturing, this point of view actually misses where exactly we are in the Manufacturing cycle.
What the disappointed people see: Eeyores view:
Here is a less myopic view:
Source: https://tradingeconomics.com/united-states/business-confidence
Yes the trend is declining.
Look at where we have been!
Now back to the ISM report:
““Comments from the panel reflect continued expanding business strength, supported by notable demand and output, although both were softer than the prior month. Demand expansion continued, with the New Orders Index reaching the mid-50s, the Customers’ Inventories Index scoring lower and remaining too low, and the Backlog of Orders returning to a low-50s expansion level. ” – No bad news to be found here!
We continue to see the positives in the ISM PMI indicator. Our shops are running full and sentiment on our internal reports remains strongly positive.
We’re definitely not having an Eeyore moment in Precision Machining!
Disney photocredit: https://winniethepooh.disney.com/eeyore