Appliance Manufacturing Sector Grows; Overall Manufacturing Index Highest since 2004
Mar 2, 2011
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The U.S. Electrical Equipment, Appliances & Components industry segment reported growth in February 2011, according to the latest Manufacturing ISM Report On Business.
ISM said economic activity in the manufacturing sector overall expanded for the 19th consecutive month and the overall economy grew for the 21st consecutive month. The ISM PMI Index stood at 61.4 for February, up from 60.8 in January.
NEW ORDERS. The Electrical Equipment, Appliances & Components sector was one of the 13 industry sectors (out of 18 total tracked by ISM) reporting February growth in new orders.
PRODUCTION. The Appliance sector was among the 12 that reported a February growth in production.
EMPLOYMENT. Appliance was among 14 industry sectors that reported February growth in employment.
SUPPLIER DELIVERIES. Appliance was among the seven sectors that reported slower supplier deliveries in February.
INVENTORIES. Appliance was among four sectors reporting higher inventories in February.
CUSTOMERS' INVENTORIES. Appliance was among the 11 industries reporting customers' inventories as being too low in February.
PRICES. Appliance was among the 13 industries reporting paying increased prices during the month of February.
BACKLOG OF ORDERS. Appliance was among 10 sectors reporting increased order backlogs in February.
NEW EXPORT ORDERS. Appliance was among the 12 sectors reporting growth in new export orders in February.
IMPORTS. Appliance was among the nine sectors reporting growth in imports in February.
Of the 18 manufacturing industries tracked by ISM, 14 reported growth in February, in the following order:
• apparel, leather & allied products
• petroleum & coal products
• transportation equipment
• electrical equipment, appliances & components
• chemical products
• fabricated metal products
• computer & electronic products
• textile mills
• food, beverage & tobacco products
• printing & related support activities
• paper products
• wood products
• miscellaneous manufacturing
Four industries reporting contraction in February were:
• plastics & rubber products
• primary metals
• nonmetallic mineral products
• furniture & related products
"February's report from the manufacturing sector indicates continuing strong performance as the PMI registered 61.4%, a level last achieved in May 2004," said Norbert J. Ore, CPSM, C.P.M., chair of the ISM Manufacturing Business Survey Committee. "New orders and production, driven by strength in exports in particular, continue to drive the composite index (PMI). New orders are growing significantly faster than inventories, and the Customers' Inventories Index indicates supply chain inventories will require continuing replenishment. The Employment Index is above 60% for only the third time in the last decade. While there are many positive indicators, there is also concern as industries related to housing continue to struggle and the Prices Index indicates significant inflation of raw material costs across many commodities."
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