Forgive us if our schizophrenia is showing. Precision Machined Products shops serve Manufacturing and Construction markets.
According to the latest ISM Purchasing Managers Report, the US manufacturing sector grew at its fastest pace in almost seven years in January.
The ISM Manufacturing rose to 60.8, the highest reading we can recall since we started paying attentionto this index. It hasn’t been this high since May 2004. With success comes a new set of problems-according to the ISM report, “No commodities are reported down in price.”
Aluminum, Brass, Copper, Stainless Steel, Steel, and Steel Surcharges all reported “Up in Price.”
Now for the not so good news.
On Tuesday, the US Commerce Department posted its latest figures on construction spending.
According to the report, US construction spending dropped to an annual rate of approximately $787.9 Billion- the lowest since July 2000.
Another data point confirming the “lost decade.”
Good News Bad News Photo Credit
Abandoned Construction Photo credit
Tag: ISM Manufacturing Report
And Precision Machining is likely to show a similar pickup when we compile our numbers later this month.
Precision machined components are critical to many manufactured goods in many markets including automotive, off road, aerospace, medical, appliance and many, many, more.
The Institute of Supply Management (ISM) said its survey of purchasing managers nationwide revealed strong gains in new orders and production; its index rose to to 56.9%, from 54.5% in September. you can read their survey here.
Of the 18 manufacturing industries, 14 are reporting growth in October, in the following order: Apparel, Leather & Allied Products; Primary Metals; Petroleum & Coal Products; Machinery; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; Printing & Related Support Activities; Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; and Chemical Products.
The two industries reporting contraction in October are: Nonmetallic Mineral Products; and Furniture & Related Products.
Manufacturing activity has expanded for 15 consecutive months but the rate of growth has been slowing since April. This latest strong showing provides hope for continued growth for the balance through the end of the year.
“This month’s report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter,” said Norbert Ore, head of the ISM’s manufacturing business survey committee.
Photocredit.
