New Orders: 27.9, pr. 32.2 (Oct), 38.8 (Sep), 48.3 (Aug), 45.0 (Jul)
Production: 31.5, pr. 34.1 (Oct), 40.8 (Sep), 52.1 (Aug), 52.9 (Jul)
Employment: 34.2, pr. 34.6 (Oct), 41.8 (Sep), 49.7 (Aug), 51.9 (Jul)
Prices: 25.5, pr. 37.0 (Oct), 53.5 (Sep), 77.0 (Aug), 88.5 (Jul)

The manufacturing sector contracted in November at the fastest pace in 26 years, adding to the woes facing the US economy. The Euro-zone, UK, China, and Russia all saw similar weak performances as the world's major economies succumb to a global slowdown. The financial crisis has seeped into main street as retail sales fall and household spending is being curtailed in the face of weakening economic activity. In response to weaker sales and demand, companies are cutting production. The news will add pressure on policy member at the Fed to continue lowering rates and on the government to pass some kind of package to stimulate the economy. 

From the Release: "When comparing November to October, the PMI indicates a continuing rapid rate of contraction in manufacturing. New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2 percent. Order backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993. The Prices Index at 25.5 percent indicates that commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1 percent.

Manufacturing contracted in November as the PMI registered 36.2 percent, 2.7 percentage points lower than the 38.9 percent reported in October. This is the lowest reading since May 1982 when the PMI registered 35.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting."

New Orders: 32.2, pr. 38.8 (Sep), 48.3 (Aug), 45.0 (Jul), 49.6 (Jun)
Production: 34.1, pr. 40.8 (Sep), 52.1 (Aug), 52.9 (Jul), 51.5 (Jun)
Employment: 34.6, pr. 41.8 (Sep), 49.7 (Aug), 51.9 (Jul), 43.7 (Jun)
Prices: 37.0, pr. 53.5 (Sep), 77.0 (Aug), 88.5 (Jul), 91.5 (Jun)

New orders, production, and employment components all contracted significantly, while prices dropped. This pulled the overall index down 4.6 points to 38.9, the lowest since September, 1982. 50 is the expansion/contraction level for the manufacturing sector, while a long period of 41.1 or above indicates general economic expansion. Thus the current level suggests contraction in both manufacturing and the overall economy. Also, the exports component dropped 11 points to 41, and reflected the global slowdown. The Apparel, Leather and Allied Products was the only industry that saw improvements in new orders, production and employment.

Norbert J, Ore, C.P.M, Charit of ISM Manufacturing Business Survey Committee commented:

"The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. It appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices. This is the lowest level for the PMI since September 1982 when it registered 38.8 percent. In this report, we see inflationary pressures dissolving as the Prices Index fell to 37 percent, the lowest since December 2001 when it registered 33.2 percent. Export orders also contracted for the first time following 70 months of growth."

For October

See "ISM Manufacturing Index" for details

For September
Provided by: Institute of Supply Management
Latest Relase: Report

Prices: 53.5, pr. 77.0 (Aug), 88.5 (Jul), 91.5 (Jun), 87.0 (May)
New Orders: 38.8, pr. 48.3 (Aug), 45.0 (Jul), 49.6 (Jun), 49.7 (May)
Production: 40.8, pr. 52.1 (Aug), 52.9 (Jul), 51.5 (Jun), 51.2 (May)
Employment: 41.8, pr. 49.7 (Aug), 51.9 (Jul), 43.7 (Jun), 45.5 (May)
Inventories: 43.4, pr. 49.3 (Aug), 45.0 (Jul), 51.2 (Jun), 48.0 (May)

US factories had a terrible month in September after coming close back to expansion territory in August. Today's figure of 43.5 was sharply lower than expectations of a 49.5 reading, and is the lowest level since October 2001, the month after the terrorist attacks on the United States. The drop in the index between August and September was the biggest since 1984. With the credit crunch intensifying in the latter part of the month the figures for October may be just as bad. Us stocks were weaker in morning trading, with the Dow Jones down 170 points by 10:20 AM EST.

From the Release: "The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month. This is the lowest level for the PMI since October 2001. This month's report is showing prices rising at a much slower rate, as the Prices Index fell to the lowest level in 21 months. Export orders continued to increase, but at a slower rate than in August."

The Dollar though gaining on the even weaker Euro and Pound, was down against the Yen as risk aversion picked up again in NY trading.

For August
Provided by: Institute of Supply Management
Latest Relase: Report

Prices: 77.0, pr. 88.5 (Jul), 91.5 (Jun), 87.0 (May), 84.5 (Apr)
New Orders: 48.3, pr. 45.0 (Jul), 49.6 (Jun), 49.7 (May), 46.5 (Apr)
Production: 52.1, pr. 52.9 (Jul), 51.5 (Jun), 51.2 (May), 49.1 (Apr)
Employment: 49.7, pr. 51.9 (Jul), 43.7 (Jun), 45.5 (May), 45.4 (Apr)
Inventories: 49.3, pr. 45.0 (Jul), 51.2 (Jun), 48.0 (May), 48.1 (Apr)

From the Release: "The PMI indicates a slight decline in manufacturing during August. This continues the 2008 trend toward negligible growth or contraction each month, but ultimately results in very little overall change in the sector. This month's report is showing the first signs of lower prices as the Prices Index fell significantly, though still at an inflationary level. Export orders picked up additional momentum, and that is important to manufacturers as domestic demand remains soft for most industries."

For July
Provided by: Institute of Supply Management
Latest Relase: Report

Prices: 88.5, pr. 91.5 (Jun), 87.0 (May), 84.5 (Apr), 83.5 (Mar),
New Orders: 45.0, pr. 49.6 (Jun), 49.7 (May), 46.5 (Apr), 46.5 (Mar)
Production: 52.9, pr. 51.5 (Jun), 51.2 (May), 49.1 (Apr), 48.7 (Mar)
Employment: 51.9, pr. 43.7 (Jun), 45.5 (May), 45.4 (Apr), 49.2 (Mar)
Inventories: 45.0 pr. 51.2 (Jun), 48.0 (May), 48.1 (Apr), 44.9 (Mar)

Manufacturing activity in the US just managed to stay in expansion, posting a 50 for the overall composite index. New orders and inventories slipped, but the production sub indexe grew compared to last month. Employment showed a sharp increase from 43.7 to 51.9, the main positive change this month. Prices paid were also down from 91.5 to 88.5. With the index boosted by employment rather than orders the report may not be all that great.

From the Release: "In this month's report, manufacturers indicate no change in overall business activity when comparing July to June. This continues a trend biased toward relatively minor contraction established more than 12 months ago. Manufacturing has maintained a reasonable level of activity during a period in which other sectors of the economy have been in recession. While the PMI indicates little to no change has occurred during this period, it would be hard to convince manufacturers who are faced with higher costs and uncertain demand that there is little change taking place."

For June
Provided by: Institute of Supply Management
Latest Relase: Report

Prices: 91.5, pr. 87.0 (May), 84.5 (Apr), 83.5 (Mar), 75.5 (Feb)
New Orders: 49.6, pr. 49.7 (May), 46.5 (Apr), 46.5 (Mar), 49.1 (Feb)
Production: 51.5, pr. 51.2 (May), 49.1 (Apr), 48.7 (Mar), 50.7 (Feb)
Employment: 43.7, pr. 45.5 (May), 45.4 (Apr), 49.2 (Mar), 46.0 (Feb)
Inventories: 51.2, pr. 48.0 (May), 48.1 (Apr), 44.9 (Mar), 45.4 (Feb)

The ISM Manufacturing Index posted a 50.2 in June, bringing the indicator into expansion territory after 4 months of readings below 50. Prices continued to accelerate, hitting 91.5, the highest measure since July 1979, as firms deal with higher input costs. Production and inventories improved, while the employment sub-index declined to 43.7. Whereas the UK and Euro-zone are experiencing contraction in their latest reports, it seems that manufacturing activity in the US may be bottoming out, though it too early to tell.    

From the Release: "The manufacturing sector showed a slight improvement in June as the PMI registered above 50 percent after four months of decline. While the PMI indicates minimal change is taking place month over month that is hardly the situation. When viewed from the manufacturer's perspective, they are experiencing higher prices for their inputs while demand for their products is slowing.

What respondents are saying:

• "The shock waves from high crude price continue to put pressure on derivative pricing." (Chemical Products)
• "Business appears to have bottomed out." (Transportation Equipment)
• "Seeing renewed interest in outstanding quotes." (Machinery)
• "Volume is normal, and we are able to recover some of the raw material (steel cost) increases." (Fabricated Metal Products)
• "Commodity bubble is killing profitability." (Food, Beverage & Tobacco Products)
• "Orders have slowed, and prices for metals are going up." (Computer & Electronic Products)"

For May
Provided by: Institute of Supply Management
Latest Relase: Report

Prices: 87.0, pr. 84.5, 83.5 (Mar), 75.5 (Feb)
New Orders: 49.7, pr. 46.5, 46.5 (Mar), 49.1 (Feb)
Production: 51.2, pr. 49.1, 48.7 (Mar), 50.7 (Feb)
Employment: 45.5, pr. 45.4, 49.2 (Mar), 46.0 (Feb)
Inventories: 48.0, pr. 48.1, 44.9 (Mar), 45.4 (Feb)

Manufacturing activity contracted again, but edged up from 48.6 in April to 49.6. While the manufacturing sector is slowing, the PMI is above 41.1, which represents that the economy is still growing, though at a slower pace. Outputs quickened for the first time since February, and new orders improved significantly from April. The employment component also improved as hiring ticked up. The less covetted export continues to improve as the dollar has been losing value this year, making exports more attractive. With new orders bouncing back, and export orders continuing to climb, the demand seems to be holding up the economy above the murky waters of recession.

Prices are skyrocketting according to respondents. The prices index has been surging and is now the highest since the 88 in April 2004. From the release:

The ISM Prices Index registered 87 percent in May, indicating manufacturers are paying higher prices on average when compared to April. This is the highest reading for the index since it registered 88 percent in April 2004. While 78 percent of respondents reported paying higher prices and 4 percent reported paying lower prices, 18 percent of supply executives reported paying the same prices as the preceding month. A Prices Index above 47.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.

For April
Provided by: Institute of Supply Management
Official Relase: Report

Prices: 84.5, pr. 83.5 (Mar), 75.5 (Feb)
New Orders: 46.5, pr. 46.5 (Mar), 49.1 (Feb)
Production: 49.1, pr. 48.7 (Mar), 50.7 (Feb)
Employment: 45.4, pr. 49.2 (Mar), 46.0 (Feb)
Inventories: 48.1, pr. 44.9 (Mar), 45.4 (Feb)

The Manufacturing sector matched March's figure of 48.6, the 3rd month in a row that activity has contracted. Despite that fact, the release helped the Dollar extend some of its earlier gains vs the Euro as the result came in better than expected. Prices continue to rise, as 84.5% of respondents said they saw higher prices for commodities and energy and their purchasing power declines as the Dollar continues to fall in value.

From the Release:

"The manufacturing sector failed to grow in April as the PMI fell below 50 percent for the third consecutive month. Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates. Bright spots this month are the growth in the Backlog of Orders Index after six consecutive months of decline, continued strength in new export orders and a reduction in customers' inventories."

For April
Provided by: Institute of Supply Management
Official Relase: Report

Prices: 84.5, pr. 83.5 (Mar), 75.5 (Feb)
New Orders: 46.5, pr. 46.5 (Mar), 49.1 (Feb)
Production: 49.1, pr. 48.7 (Mar), 50.7 (Feb)
Employment: 45.4, pr. 49.2 (Mar), 46.0 (Feb)
Inventories: 48.1, pr. 44.9 (Mar), 45.4 (Feb)

The Manufacturing sector matched March's figure of 48.6, the 3rd month in a row that activity has contracted. Despite that fact, the release helped the Dollar extend some of its earlier gains vs the Euro as the result came in better than expected. Prices continue to rise, as 84.5% of respondents said they saw higher prices for commodities and energy and their purchasing power declines as the Dollar continues to fall in value.

From the Release:

"The manufacturing sector failed to grow in April as the PMI fell below 50 percent for the third consecutive month. Manufacturers are in a situation where both new orders and production are slowly declining, but prices continue to rise at highly inflationary rates. Bright spots this month are the growth in the Backlog of Orders Index after six consecutive months of decline, continued strength in new export orders and a reduction in customers' inventories."

For March
Provided by: Institute of Supply Management

Prices:             83.5, pr. 75.5
New Orders:     46.5, pr. 49.1
Production:      48.7. pr. 50.7
Employment:    49.2, pr. 46.0

Though economic activity in the manufacturing sector failed to grow in March, the result from the ISM was better than expected. Economists had predicted a further fall of the index, but it managed to improve from February's result. The index was helped by an increase to the employment and deliveries, and backlog of orders sub gauges, though new orders and production declined. Prices surged, increasing 8 percentage points to 83.5. 

The Dollar continued its overnight rally following the news, especially against the Yen.