ISM Report Shows Continued Strength of Manufacturing

WASHINGTON—The latest Manufacturing ISM Report On Business from the Institute for Supply Management indicates the U.S. manufacturing sector grew slightly in November, while the overall economy expanded for an 18th consecutive month. The Manufacturing PMI registered 61.1 percent, 0.3 percentage point higher than the October reading of 60.8 percent.

ISM’s New Orders Index registered 61.5 percent in November, an increase of 1.7 percentage points compared to the 59.8 percent reported in October. This indicates that new orders grew for the 18th consecutive month.

However, the delivery performance of suppliers to manufacturing organizations was slower in November, as the Supplier Deliveries Index registered 72.2 percent, 3.4 percentage points lower than the 75.6 percent reported in October. In addition, The Inventories Index registered 56.8 percent, 0.2 percentage point lower than the 57 percent reported for October, indicating manufacturing inventories continued to expand.

Also of note, ISM’s Backlog of Orders Index registered 61.9 percent in November, a 1.7-percentage point decrease compared to the 63.6 percent reported in October. This is the 10th consecutive month with a reading above 60 percent, as order backlogs expanded for the 17th straight month.

The Production Index registered 61.5 percent in November, 2.2 percentage points higher than the October reading of 59.3 percent, indicating growth for the 18th consecutive month. ISM’s Employment Index registered 53.3 percent in November, 1.3 percentage points above the October reading of 52 percent. The Employment Index reported a third month of expansion.

Some 13 manufacturing industries reported growth in November. In the following order, they are: Apparel, Leather and Allied Products; Furniture and Related Products; Electrical Equipment, Appliances and Components; Computer & Electronic Products; Machinery; Plastics and Rubber Products; Paper Products; Food, Beverage and Tobacco Products; Miscellaneous Manufacturing; Chemical Products; Petroleum and Coal Products; Fabricated Metal Products; and Transportation Equipment.

The two industries reporting a decrease in November compared to October are Printing and Related Support Activities; and Primary Metals.

The ASSEMBLY Show South

ASSEMBLY is thrilled to return to the Music City Center in Nashville, TN for The ASSEMBLY Show SOUTH on May 1-2, 2024. This is a booming time for manufacturing and the U.S. South is right in the heart of the action. According to ASSEMBLY’s most recent annual capital spending survey, the South is projected to account for 31 percent of total spending this year, marking the fifth straight year this region has accounted for at least 30 percent of capital spending in the U.S.

In this session, manufacturers will learn how Quality function deployment (QFD) can transform consumers’ qualitative demands into quantitative parameters that will shape the design of their product and, ultimately, their manufacturing process.

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