India and Italy both register above 50 percent for PMI readings to start the year

While many countries seemed to find a bottom for manufacturing activity, the U.S. continued to slide deeper into contraction territory based on the latest PMI reading from the ISM® Report On Business® for manufacturing. The report tagged U.S. manufacturing with a reading of 47.4 percent for January, which represents a relatively steady decline that began in December of 2021. 

The December ISM® Report On Business® gave a PMI reading of 48.4 percent for US manufacturers which continued an overall downward trend that dates back to November 2021. It was also the second straight month in contraction territory for US manufacturing. 

Indian Manufacturing PMI edges up to remain in growth territory for 17^th straight month

The November Institute for Supply Management^® Report On Business^® reported a PMI reading of 49 percent for U.S. manufacturers which represented a move into contraction territory for the first time since May 2020. The new figure supported an overall downward trend that started in November of 2021 for U.S. manufacturers.

“Manufacturing contracted in November after expanding for 29 straight months,” says Timothy R. Fiore, Chair of the ISM^®; Manufacturing Business Survey Committee.

Manufacturing in India remains Strong at 56.2 percent

The Institute for Supply Management^® (ISM^®) reported an August Manufacturing PMI^® of 52.8 percent for U.S. manufacturers. The new figure matches the same reading as recorded in July and indicates expansion in the overall economy for the 27th month in a row after a contraction in April and May 2020. For a second straight month, the Manufacturing PMI^® figure is the lowest since June 2020, when it registered 52.4 percent. The New Orders Index registered 51.3 percent, 3.3 percentage points higher than the 48 percent recorded in July. The Production Index reading of 50.4 percent is a 3.1-percentage point decrease compared to July’s figure of 53.5 percent. The Prices Index registered 52.5 percent, down 7.5 percentage points compared to the July figure of 60 percent; this is the index’s lowest reading since June 2020 (51.3 percent). The Backlog of Orders Index registered 53 percent, 1.7 percentage points above the July reading of 51.3 percent.

India, China and the UK also register above 50 percent for manufacturing PMI

The July ISM^® Report On Business^® gave a PMI reading of 52.8 percent for US manufacturers which was down from the June figure of 53.0 percent. This continued an overall downward trend for US manufacturing that dates back to October 2021. However, the reading meant the US sector stayed above the 50 percent line for the 26th straight month.

“Manufacturing performed well for the 26th straight month. There are signs of new order rates softening — cited in 16 percent of general comments, compared to 17 percent in June — as panelists are increasingly concerned about excessive inventories and continuing record-high lead times. Employment activity remained strongly positive in spite of the uncertainty with new order rates,” says Timothy R. Fiore, Chair of the ISM^® Manufacturing Business Survey Committee.

The May PMI for US Manufacturers was reported at 56.1 percent in the latest ISM^® Report On Business®. The figure was up from the April reading of 55.4 percent and ended a three-month downward trend. The figure also indicates a 24th straight month of expansion for the overall US economy after the contraction in 2020 sparked by the pandemic.