December 2020 ISM and Markit Manufacturing Surveys Show Growth
The ISM Manufacturing survey declined but remains in expansion. The Markit PMI manufacturing index improved and remains in expansion. The index value of ISM and Markit are similar.
Analyst Opinion of the Manufacturing Surveys
Based on these surveys and the district Federal Reserve Surveys, one would expect the Fed s Industrial Production index growth rate to be the same as last month. Overall, surveys do not have a high correlation to the movement of industrial production (manufacturing) since the Great Recession. No question these surveys suggest the economy is no longer in recession.
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The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management
® (ISM The January Manufacturing PMI
® registered 58.7 percent, down 1.8 percentage points from the seasonally adjusted December reading of 60.5 percent. This figure indicates expansion in the overall economy for the eighth month in a row after contraction in March, April, and May. The New Orders Index registered 61.1 percent, down 6.4 percentage points from the seasonally adjusted December reading of 67.5 percent. The Production Index registered 60.7 percent, a decrease of 4 percentage points compared to the seasonally adjusted December reading of 64.7 percent. The Backlog of Orders Index registered 59.7 percent, 0.6 percentage point above the December reading of 59.1 percent. The Employment Index registered 52.6 percent, 0.9 percentage point higher from the seasonally adjusted December reading of 51.7 percent. The Supplier Deliveries Index registered 68.2 perce
1/06/2021 12:32:00 PM
The following graph shows heavy truck sales since 1967 using data from the BEA. The dashed line is the December 2020 seasonally adjusted annual sales rate (SAAR).
Heavy truck sales really collapsed during the great recession, falling to a low of 180 thousand SAAR in May 2009. Then heavy truck sales increased to a new all time high of 575 thousand SAAR in September 2019.
However heavy truck sales started declining in late 2019 due to lower oil prices.
Note: Heavy trucks - trucks more than 14,000 pounds gross vehicle weight.
Click on graph for larger image.
Heavy truck sales really declined towards the end of March due to COVID-19 and the collapse in oil prices, but have since rebounded.
/PRNewswire/ Economic activity in the hospital subsector grew in December for the seventh consecutive month, say the nation s hospital supply executives in.
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The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management
® (ISM
®) Services Business Survey Committee: The Services PMI
™ registered 57.2 percent, 1.3 percentage points higher than the November reading of 55.9 percent. This reading represents a seventh straight month of growth for the services sector, which has expanded for all but two of the last 131 months. The Supplier Deliveries Index registered 62.8 percent, up 5.8 percentage points from November s reading of 57 percent. (Supplier Deliveries is the only ISM
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Report On Business
® index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)