Economic activity in the manufacturing sector grew in December for the sixth consecutive month, while the overall economy grew for the 26th consecutive month, according to the latest survey of purchasing managers by the Institute for Supply Management (ISM), Tempe, Ariz. ISM’s Purchasing Managers Index is 66.2 percent in December, an increase of 3.4 percentage points when compared to 62.8 percent in November.
“With the PMI growing at an accelerating rate, the manufacturing sector enjoyed its best month since December 1983,” said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia Pacific Corp. “Much of the momentum is in New Orders, as the Index is the highest reported reading since July 1950. The strength in December’s data provides significant encouragement for prospects in the first quarter of 2004.”
Comments from purchasing and supply managers validate that a recovery is underway, and month-over-month improvement is significant to many respondents for the first time in three years. Although some expressed concern over steel prices, many expect relief with the release of the steel tariffs.
Added Ore, “The month-over-month growth from November to December indicates a rapid recovery taking place in the sector, though there are still some businesses lagging and wondering when they will see the improvement that others are experiencing.”