none

US MANUFACTURING STILL SLUGGISH

06-02-2016
by 
in 

US manufacturing activity contracted again in January – its fourth straight monthly drop.

A new survey from the Institute for Supply Management revealed manufacturing activity in January increased marginally from December, but the sector is still in a slump.

The ISM purchasing managers index (PMI) for the manufacturing sector registered 48.2, slightly better than the downwardly-revised 48.0 registered in December. (Below 50 indicates contraction).

More than half of the 18 industries surveyed reported business was worse — led by the oil and gas sector, which has been cutting back sharply amid the plunge in oil prices. Also reporting shrinking business were the apparel, food and beverage, transportation equipment and fabricated metal products sectors.

Still growing were the computer and electronics, machinery, electrical equipment and printing sectors.

On the positive side, the production index increased from 49.9 to 50.2, while new orders rose from 48.8 to 51.5.

“The findings of this month’s ISM report are consistent with recent Census Bureau data on factory orders and the Federal Reserve Board’s latest index of manufacturing activity,” said Don Norman, director of economic studies for the MAPI Foundation.

“The drivers behind the slowdown in manufacturing activity are easy to identify. The slowdown in China’s economic growth and the rise in the value of the dollar over the past year are largely responsible for the decline in exports. The dramatic fall in the price of oil, coupled with the low price of natural gas, has reduced oil and gas development activity and thus the demand for manufactured goods required for such development.

“Given how the manufacturing sector has been buffeted by these negative events, it encouraging that manufacturing sector activity hasn’t contracted more sharply than it has.”

Related news & editorials

  1. 20.06.2019
    20.06.2019
    by      In
    The Australian Made Campaign’s famous green-and-gold kangaroo Australian Made, Australian Grown logo is now a registered trademark in Hong Kong, officially the Hong Kong Special Administrative Region of the People’s Republic of China.
    According to Austrade, Australia exported $11 billion of... Read More
  2. 20.06.2019
    20.06.2019
    by      In
    Graham Thomson Motors of Shepparton, part of the Mildura Truck Centre group, has joined the dealer network of Melbourne-based parts supplier and trailer manufacturer MaxiTrans, distributing the group’s full range of products in the city and surrounding areas of north-eastern Victoria.
    Graham... Read More
  3. 19.06.2019
    19.06.2019
    by      In
    Green Distillation Technologies is aiming to bring its first tyre recycling plant at Warren, NSW up to full production following the recent award of an Environmental Protection Licence by the New South Wales EPA.
    The original plant design was for six tyre-processing modules, but to date only one... Read More
  4. 18.06.2019
    18.06.2019
    by      In
    ABB has appointed IPD as the Australian distributor of its electrification products for the 415V switchboard manufacturer channel from July 2019. IPD will also provide ABB low voltage power distribution solutions to major electrical contractors, while all other channels will continue to be serviced... Read More