The ISM Manufacturing Report is out. PMI is at 55.7%.
The biggest element to note in the survey is the 6.9% jump in employment for manufacturing to 53.1. While inventories are still contracting, this implies firms are finally ramping up with new production. The employment index has been below 50 (which means contracting) for over a year.
Before you get your panties all in a bunch, bear in mind these companies will first call back laid off workers and manufacturing has lost millions of jobs. Also note new orders is down from last month, although still expanding.
| MANUFACTURING AT A GLANCE OCTOBER 2009 | ||||||
|---|---|---|---|---|---|---|
|
Index |
Series Index Oct. |
Series Index Sept. |
% Point Change |
Direction |
Rate of Change |
Trend* (Mon.) |
| PMI | 55.7 | 52.6 | +3.1 | Growing | Faster | 3 |
| New Orders | 58.5 | 60.8 | -2.3 | Growing | Slower | 4 |
| Production | 63.3 | 55.7 | +7.6 | Growing | Faster | 5 |
| Employment | 53.1 | 46.2 | +6.9 | Growing | From Contracting | 1 |
| Supplier Deliveries | 56.9 | 58.0 | -1.1 | Slowing | Slower | 5 |
| Inventories | 46.9 | 42.5 | +4.4 | Contracting | Slower | 42 |
| Customers' Inventories | 38.5 | 39.0 | -0.5 | Too Low | Faster | 7 |
| Prices | 65.0 | 63.5 | +1.5 | Increasing | Faster | 4 |
| Backlog of Orders | 53.5 | 53.5 | 0.0 | Growing | Same | 3 |
| Exports | 55.5 | 55.0 | +0.5 | Growing | Faster | 4 |
| Imports | 51.0 | 52.0 | -1.0 | Growing | Slower | 2 |
| OVERALL ECONOMY | Growing | Faster | 6 | |||
| Manufacturing Sector | Growing | Faster | 3 | |||
It's the levels.
That's a big hole to fill and this is just manufacturing. But this also shows something else.
RebelCapitalist.com - Financial Information for the Rest of Us.
RebelCapitalist.com - Financial Information for the Rest of Us.
long term trend line
Nice reminder Rebel. And when these idiots claim it's all due to technological advances in productivity, I"d just like to scream. We all know that cheap labor enters into productivity equations, it's wage/hr. in these equations...
so offshore outsource production, wala, productivity magically goes up because they are unfortunately attributing production overseas to U.S. domestic production in productivity calculations. (due to global supply chain, components).