ISM activity index highest since May 2000

Manufacturing News, Source : TheManufacturer.com
Published : 05 Jun 2002 8:35

According to a report issued by the Institute for Supply Management (ISM) on Monday, activity in the manufacturing sector has increased in May for the fourth consecutive month.

The ISM announced that its activity index rose from 53.9 in April to 55.7 in May, the highest rating since 2000.

Separately, the Department of Commerce announced on Monday that construction spending, mostly from commercial projects, increased in April 0.2% from March to a seasonally adjusted rate of $871.9 billion annually. Overall, these figures have surpassed analysts’ expectations.

The ISM report was issued by Norbert Ore, chair of the ISM’s Manufacturing Business Survey Committee and group director. “May was a good month for manufacturing. The PMI strengthened as 16 industries saw improvement in new orders. This should help establish momentum in the sector that will carry forward into the third quarter,” he said.

“Some sectors are experiencing a faster recovery than others,” continued Ore. “The pass-through of oil prices seems to have slowed. Energy is still a concern for many buyers. Primary metals, furniture, transportation & equipment, and printing & publishing are aggressively hiring at this time.” With the increase in construction spending and production, employment is expected to rise in the next quarter.

Steel is the only commodity reported in short supply. Commodities reported up in price are: aluminum, high density polyethylene, natural gas, paper, plastic film, polyethylene, resins, steel (cold rolled), and steel (flat rolled).

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