In the August 2009 report by the Institute for Supply Management (ISM), ISM shows American Manufacturing is finally growing! The ISM’s Purchasing Manager’s Index (PMI) was 52.9. A PMI reading over 50 indicates manufacturing is growing…while a reading below 50 indicates that manufacturing is contracting.
For eight (8) straight months the PMI index has increased, however, August was the only month that the PMI finally crossed 50…showing American Manufacturing is growing.
In August, 11 of the 18 manufacturing industries—Textile Mills; Apparel, Leather and Allied Products; Paper Products; Miscellaneous Manufacturing; Printing and Related Support Activities; Computer and Electronic Products; Transportation Equipment; Nonmetallic Mineral Products; Electrical Equipment, Appliances and Components; Fabricated Metal Products; and Chemical Products—reported growth. ISM also expects manufacturing to continue to grow through the end of 2009. Yeah, American Manufacturing is on the Comeback !!!
One of the key drivers to the increase in the PMI is New Orders in Manufacturing due to manufacturing inventories being down 11 consecutive months.
But before we get too excited, in August, Manufacturing lost another 63,000 jobs. The pace of job loss has slowed but more job losses in this sector still hurts. As a matter of fact, in 15 counties in Ohio, Kentucky & Indiana Manufacturing lost 17,500 jobs from July 2008 – July 2009. This was about 2.5 TIMES more jobs lost than any other sector. (Ohio Department of Job and Family Services)
Although there are still job losses, this growth in American Manufacturing is real…or is it?
Let me know what you think…Do you believe American Manufacturing is on the Comeback ?