Economic activity in the U.S. manufacturing sector overall expanded in October 2011 although the Electrical Equipment, Appliances & Components industry segment reported contraction, according to the latest Manufacturing ISM Report On Business.
The report, which breaks out U.S. Manufacturing by 18 total industry segments, reported that manufacturing overall grew for the 27th consecutive month, and the overall economy grew for the 29th consecutive month, according to U.S. supply executives in the latest Manufacturing ISM Report On Business.
"The PMI registered 50.8%, a decrease of 0.8 percentage point from September's reading of 51.6%, indicating expansion in the manufacturing sector for the 27th consecutive month" said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The New Orders Index increased 2.8 percentage points from September to 52.4%, indicating a return to growth after three months of contraction. The Prices Index, at 41%, dropped 15 percentage points, and is below the 50% mark for the first time since May 2009 when it registered 43.5%. Inventories decreased to 46.7%, which is 5.3 percentage points below the September reading of 52%. Comments from respondents are mixed, indicating positive relief from raw materials pricing and continuing strength in a few industries, but there is also more concern and caution about growth in this uncertain economy."
One survey respondent from the Electrical Equipment, Appliances & Components industry segment characterized the industry in October this way: "Overall industry volumes remain flat vs. previous month. Uncertainty in supply chain is increasing due to lower volumes vs. historical."
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