Tempe, AZ, January 3, 2006--Economic activity in the manufacturing sector grew in December for the 31st consecutive month, while the overall economy grew for the 50th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "2005 was an excellent year for the manufacturing sector as measured by the ISM data. In December, we saw a decline in the rate of growth of both new orders and production, but both indexes are at levels that support economic growth. We saw a significant slowing in the upward pricing spiral that has been a source of continuing concern for manufacturers. A strong fourth quarter should carry significant momentum forward into 2006."
The 10 industries reporting growth in December--listed in order--are: Miscellaneous; Petroleum; Food; Primary Metals; Industrial & Commercial Equipment & Computers; Electronic Components & Equipment; Instruments & Photographic Equipment; Paper; Rubber & Plastic Products; and Transportation & Equipment.
"Business remains strong into our traditional slow time. This is a big surprise. The reason is the construction economy continues to be strong." (Fabricated Metals)
"Sales have improved as a result of impending holidays." (Food)
"Steel prices are staying at the fourth-quarter level at least for the first quarter and possibly the first six months of 2006." (Furniture)
"Although gas and electricity costs are quite high, we are able to offset these costs by a strong construction market that enables us to maintain a good profit margin." (Primary Metals)
"Business continues to remain strong. We are beginning to see a retreat in petroleum-based goods." (Textiles)
