December ISM Report
According to the latest ISM Manufacturing Report on Business, dated January 3, 2012, “economic activity in the U.S. manufacturing sector expanded in December for the 31st consecutive month. ”
In addition, new orders, production and employment all grew, supplier deliveries were faster, and inventories again contracted during the month of December.”
December Dow Jones Industrial Averages
With regard the U.S. stock market, December’s positive news from the manufacturing sector seems to have had a positive effect on the Dow Jones Industrial Average, at least during the last half of the month. As always, however there were many other contributing factors.
On November 30, 2011, for example, the Dow closed at 12,401.58, gaining 489-points, the largest one day gain of 2011 and the best percentage gain since March 2009.
Seemingly having nowhere to go but down, the close on December 15, 2011 was 11,870
Then on December 31 the close was back up at 12,218.
So, in summary, the DJIA started the month with its expected downswing, but by the 31st managed to recover and even ended the year with a 5.5% year to date increase.
Breakdown By Industry
The December report’s breakdown by industry seems to indicate that once again not everything’s coming up roses in the manufacturing sector.
“Of the 18 manufacturing industries, nine are reporting growth in December in the following order: Apparel, Leather & Allied Products; Printing & Related Support Activities; Textile Mills; Petroleum & Coal Products; Machinery; Food, Beverage & Tobacco Products; Computer & Electronic Products; Primary Metals; and Paper Products.
The nine industries reporting contraction in December — listed in order — are: Plastics & Rubber Products; Nonmetallic Mineral Products; Furniture & Related Products; Chemical Products; Wood Products; Miscellaneous Manufacturing; Fabricated Metal Products; Transportation Equipment; and Electrical Equipment, Appliances & Components.”
December Manufacturing Direction & Rate Of Change
The report also includes A Manufacturing At A Glance Chart for December, 2011 that features, among other things, direction and rate of change as follows:
- Overall Economy: Growing faster
- Manufacturing Sector: Growing faster
- PMI: Growing faster
- New Orders: Growing faster
- Production: Growing faster
- Employment: Growing faster (from slower in November)
- Supplier Deliveries: Faster at the same rate (from slower in November)
- Inventories: Contracting faster (from slower in November)
- Customer’s Inventories: Too low (from unchanged in November)
- Prices: Decreasing slower (same as November)
- Backlog of Orders: Contracting slower (from contracting faster in November)
- Exports: Growing faster (from unchanged in November)
- Imports: Growing (from contracting faster in November)
Of particular interest to flexitank manufacturer, EPT is the fact that chemical products reported contraction in both November and December of 2011.
