Dec. 18, 2013
PMI Reaches 2013 High at 57.3 Percent
Economic activity in the manufacturing sector expanded in November for the sixth consecutive month as the PMI registered 57.3 percent, according to the latest Manufacturing Report on Business from the Tempe, Ariz.-based Institute for Supply Management. The figure was an increase of 0.9 percentage points from October and the highest figure in 2013.The PMI has increased each month since June.
Of the 18 manufacturing industries surveyed, 15 reported growth in November, including primary metals, miscellaneous manufacturing and fabricated metal products.
"The past relationship between the PMI and the overall economy indicates that the average PMI for January through November of 53.7 percent corresponds to a 3.6 percent increase in real gross domestic product on an annualized basis,” says Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee. “If the PMI for November is annualized, it corresponds to a 4.7 percent increase in real GDP annually."
The New Orders Index increased in November by 3 percentage points to 63.6 percent, while the Production Index increased by 2 percentage points to 62.8 percent. The Employment Index registered 56.5 percent, an increase of 3.3 percentage points compared to October's reading of 53.2 percent. This reflects the highest reading since April 2012.