Manufacturing Expanded to 54.7% in November

Tempe, AZ, January 3, 2017—The December PMI registered 54.7%, an increase of 1.5 percentage points from the November reading of 53.2%, according to the Manufacturing ISM Report On Business.

The New Orders Index registered 60.2%, an increase of 7.2 percentage points from the November reading of 53%.

The Production Index registered 60.3%, 4.3 percentage points higher than the November reading of 56%.

The Employment Index registered 53.1%, an increase of 0.8 percentage point from the November reading of 52.3%.

Inventories of raw materials registered 47%, a decrease of 2 percentage points from the November reading of 49%.

The Prices Index registered 65.5% in December, an increase of 11 percentage points from the November reading of 54.5%, indicating higher raw materials prices for the tenth consecutive month.

The PMI, New Orders, Production and Employment Indexes all registered new highs for the year 2016.

Of the 18 manufacturing industries, 11 are reporting growth in December in the following order: Petroleum & Coal Products; Primary Metals; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Paper Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products. The six industries reporting contraction in December—listed in order—are Plastics & Rubber Products; Furniture & Related Products; Printing & Related Support Activities; Textile Mills; Nonmetallic Mineral Products; and Transportation Equipment.