{"id":17593,"date":"2021-01-06T17:13:01","date_gmt":"2021-01-06T23:13:01","guid":{"rendered":"https:\/\/www.miq.com\/?p=16695"},"modified":"2021-01-06T17:13:01","modified_gmt":"2021-01-06T23:13:01","slug":"december-2020-manufacturing-ism-report-on-business","status":"publish","type":"post","link":"https:\/\/www.noatumlogistics.com\/us\/december-2020-manufacturing-ism-report-on-business\/","title":{"rendered":"DECEMBER 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae"},"content":{"rendered":"<p>Source:\u00a0 <a href=\"https:\/\/www.ismworld.org\/supply-management-news-and-reports\/reports\/ism-report-on-business\/pmi\/december\/\">Institute for Supply Management \u2013 January 4, 2021<\/a><\/p>\n<p>Economic activity in the manufacturing sector grew in December, with the overall economy notching an eighth consecutive month of growth, say the nation&#8217;s supply executives in the latest Manufacturing ISM\u00ae Report On Business\u00ae.<!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16696 size-full\" src=\"https:\/\/www.miq.com\/wp-content\/uploads\/2021\/01\/ISM-December-2020.png\" alt=\"\" width=\"1022\" height=\"674\" \/><\/p>\n<p>The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management\u00ae (ISM\u00ae) Manufacturing Business Survey Committee:<\/p>\n<p>\u201cThe December Manufacturing PMI\u00ae registered 60.7 percent, up 3.2 percentage points from the November reading of 57.5 percent. This figure indicates expansion in the overall economy for the eighth month in a row after contracting in March, April, and May, which ended a period of 131 consecutive months of growth. The New Orders Index registered 67.9 percent, up 2.8 percentage points from the November reading of 65.1 percent. The Production Index registered 64.8 percent, an increase of 4 percentage points compared to the November reading of 60.8 percent. The Backlog of Orders Index registered 59.1 percent, 2.2 percentage points higher compared to the November reading of 56.9 percent. The Employment Index returned to expansion territory at 51.5 percent, 3.1 percentage points higher from the November reading of 48.4 percent. The Supplier Deliveries Index registered 67.6 percent, up 5.9 percentage points from the November figure of 61.7 percent. The Inventories Index registered 51.6 percent, 0.4 percentage point higher than the November reading of 51.2 percent. The Prices Index registered 77.6 percent, up 12.2 percentage points compared to the November reading of 65.4 percent. The New Export Orders Index registered 57.5 percent, a decrease of 0.3 percentage point compared to the November reading of 57.8 percent. The Imports Index registered 54.6 percent, a 0.5-percentage point decrease from the November reading of 55.1 percent.\u201d<\/p>\n<p>Fiore continues, \u201cThe manufacturing economy continued its recovery in December. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories, but absenteeism, short-term shutdowns to sanitize facilities and difficulties in returning and hiring workers are causing strains that are limiting manufacturing growth potential. However, panel sentiment remains optimistic (three positive comments for every cautious comment), an improvement compared to November. Demand expanded, with the (1) New Orders Index growing at a strong level, supported by the New Export Orders Index expanding, (2) Customers\u2019 Inventories Index remaining in \u2018too low\u2019 territory and at a level considered a positive for future production, and the (3) Backlog of Orders Index achieving a 2\u00bd-year high. Consumption (measured by the Production and Employment indexes) contributed positively (a combined 7.1-percentage point increase) to the Manufacturing PMI\u00ae calculation. The Production Index hit a 10-year high, as the last reading above 64.8 percent was in January 2011 (65.3 percent), with five of the top six industries reporting moderate to strong expansion. The Employment Index moved into expansion after a single month of contraction, due to the inability to attract and retain direct labor. Inputs \u2014 expressed as supplier deliveries, inventories and imports \u2014 continued to indicate input-driven constraints to production expansion, at higher rates compared to November, as indicated by minimal gains in inventory levels and difficulties in expanding imports. Supply chains continue to struggle compared to November, contributing moderately to the Manufacturing PMI\u00ae calculation. (The Supplier Deliveries and Inventories indexes directly factor into the Manufacturing PMI\u00ae; the Imports Index does not.) The Prices Index jumped dramatically in December, to a level last reached in the summer of 2018, the peak of the last manufacturing expansion cycle.<\/p>\n<p>\u201cAll six of the biggest manufacturing industries \u2014 Fabricated Metal Products; Computer &amp; Electronic Products; Transportation Equipment; Chemical Products; Petroleum &amp; Coal Products; and Food, Beverage &amp; Tobacco Products \u2014 registered moderate to strong growth in December.<\/p>\n<p>\u201cManufacturing performed well for the seventh straight month, with demand, consumption and inputs registering strong growth compared to November. Labor market difficulties at panelists\u2019 companies and their suppliers will continue to restrict the manufacturing economy expansion until the coronavirus (COVID-19) crisis ends,\u201d says Fiore.<\/p>\n<p>Of the 18 manufacturing industries, 16 reported growth in December, in the following order: Apparel, Leather &amp; Allied Products; Furniture &amp; Related Products; Wood Products; Fabricated Metal Products; Machinery; Computer &amp; Electronic Products; Transportation Equipment; Plastics &amp; Rubber Products; Paper Products; Chemical Products; Petroleum &amp; Coal Products; Primary Metals; Textile Mills; Electrical Equipment, Appliances &amp; Components; Food, Beverage &amp; Tobacco Products; and Miscellaneous Manufacturing. The two industries reporting contraction in December are: Printing &amp; Related Support Activities; and Nonmetallic Mineral Products.<\/p>\n<p>Click <a href=\"https:\/\/www.ismworld.org\/supply-management-news-and-reports\/reports\/ism-report-on-business\/pmi\/december\/\">here<\/a> to access the entire release from the Institute for Supply Management website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source:\u00a0 Institute for Supply Management \u2013 January 4, 2021 Economic activity in the manufacturing sector grew in December, with the overall economy notching an eighth consecutive month of growth, say&#8230;<\/p>\n","protected":false},"author":9,"featured_media":16696,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[359],"tags":[],"class_list":["post-17593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>DECEMBER 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA<\/title>\n<meta name=\"description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 January 4, 2021 Economic activity in the manufacturing sector grew in December, with the overall economy ISM, Institute for Supply Management, economic activity, Manufacturing ISM Report on Business, Timothy R. Fiore, CPSM, Manufacturing PMI, New Orders Index, Production Index, Backlog Orders Index, Employment Index, Supplier Deliveries Index, Inventories Index, New Export Orders Index, Imports Index, Fabricated Metal Products; Computer &amp; Electronic Products; Transportation Equipment; Chemical Products; Petroleum &amp; Coal Products; and Food, Beverage &amp; Tobacco Products, Apparel, Leather &amp; Allied Products; Furniture &amp; Related Products; Wood Products; Fabricated Metal Products; Machinery; Computer &amp; Electronic Products; Transportation Equipment; Plastics &amp; Rubber Products; Paper Products; Chemical Products; Petroleum &amp; Coal Products; Primary Metals; Textile Mills; Electrical Equipment, Appliances &amp; Components; Food, Beverage &amp; Tobacco Products\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.noatumlogistics.com\/us\/december-2020-manufacturing-ism-report-on-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DECEMBER 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA\" \/>\n<meta property=\"og:description\" content=\"Source:\u00a0 Institute for Supply Management \u2013 January 4, 2021 Economic activity in the manufacturing sector grew in December, with the overall economy ISM, Institute for Supply Management, economic activity, Manufacturing ISM Report on Business, Timothy R. Fiore, CPSM, Manufacturing PMI, New Orders Index, Production Index, Backlog Orders Index, Employment Index, Supplier Deliveries Index, Inventories Index, New Export Orders Index, Imports Index, Fabricated Metal Products; Computer &amp; Electronic Products; Transportation Equipment; Chemical Products; Petroleum &amp; Coal Products; and Food, Beverage &amp; Tobacco Products, Apparel, Leather &amp; Allied Products; Furniture &amp; Related Products; Wood Products; Fabricated Metal Products; Machinery; Computer &amp; Electronic Products; Transportation Equipment; Plastics &amp; Rubber Products; Paper Products; Chemical Products; Petroleum &amp; Coal Products; Primary Metals; Textile Mills; Electrical Equipment, Appliances &amp; Components; Food, Beverage &amp; Tobacco Products\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.noatumlogistics.com\/us\/december-2020-manufacturing-ism-report-on-business\/\" \/>\n<meta property=\"og:site_name\" content=\"USA\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-06T23:13:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.noatumlogistics.com\/us\/wp-content\/uploads\/sites\/14\/2021\/06\/Clint-Dvorak-noatum-logistics-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"1366\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"mjgutierrez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mjgutierrez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/\"},\"author\":{\"name\":\"mjgutierrez\",\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/#\\\/schema\\\/person\\\/a5f444bdf058b79e15d5d0ac335ce513\"},\"headline\":\"DECEMBER 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae\",\"datePublished\":\"2021-01-06T23:13:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/\"},\"wordCount\":708,\"image\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/wp-content\\\/uploads\\\/sites\\\/14\\\/2021\\\/06\\\/Clint-Dvorak-noatum-logistics-2.jpg\",\"articleSection\":[\"Economic News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/\",\"url\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/\",\"name\":\"DECEMBER 2020 MANUFACTURING ISM\u00ae REPORT ON BUSINESS\u00ae - USA\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/december-2020-manufacturing-ism-report-on-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/wp-content\\\/uploads\\\/sites\\\/14\\\/2021\\\/06\\\/Clint-Dvorak-noatum-logistics-2.jpg\",\"datePublished\":\"2021-01-06T23:13:01+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.noatumlogistics.com\\\/us\\\/#\\\/schema\\\/person\\\/a5f444bdf058b79e15d5d0ac335ce513\"},\"description\":\"Source:\u00a0 Institute for Supply Management \u2013 January 4, 2021 Economic activity in the manufacturing sector grew in December, with the overall economy ISM, Institute for Supply Management, economic activity, Manufacturing ISM Report on Business, Timothy R. 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