Manufacturing Holds Steady
November 7, 2005,
Tempe, Ariz. — Holding relatively steady after surging ahead the month before, U.S. manufacturing continued to grow, if at a modestly slower pace in October, the nation’s purchasing managers reported.
But what do those numbers really mean? The purchasing managers, who track the business and write the checks for the nation’s big companies, say an index reading “in excess of 42.7 percent, over a period of time, generally indicates an expansion of the overall economy.” That said, the ISM reports that the October figure “indicates that both the overall economy and the manufacturing sector are growing.” Moreover, the trade group said, the average reading of 55.4 percent for the January-October period, “corresponds to a 4.6 percent increase in gross domestic product (GDP) on an annual basis.”
Norbert Ore, chairman of the ISM’s Manufacturing Business Survey Committee, said the manufacturing sector grew in October for a 29th straight month, with new orders and production both providing support, if growing at a modestly slower pace.
But the prices that manufacturers pay for raw materials and supplies keeps growing, rising 6 percent in October to a reading of 84 percent, up from 78 percent in September. Not only are prices rising, manufacturers are complaining that some commodities, notably chemicals, are in short supply and are on allocation and order control.
Manufacturing benchmarks Month-over-month percentage-point change
|Source: Institute for Supply Management
|Purchasing Managers’ Index||-0.3%|
|Cost of Supplies||6.0|
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.