ISM report places apparel, chemicals among top 13 businesses in May
02 Jun '06
4 min read
WHAT RESPONDENTS ARE SAYING.
"Continued concerns regarding inflation, centered around the extreme high price of crude oil and related energy products." (Chemicals)
"April was a 19-day work month, so monthly figures were not records, but on a per day basis, many production records were set." (Electronic Components & Equipment)
"Commodity prices are at record high levels and many are going on allocation." (Fabricated Metals)
"Current estimates are that the Yuan will appreciate 5 - 15 percent, thus increasing prices for products supplied out of China." (Rubber & Plastic Products)
"Fuel surcharges now up to 19.8 percent." (Transportation & Equipment)
MAY 2006 MANUFACTURING INDEX SUMMARIES:
PMI
The PMI indicates that the manufacturing economy grew in May for the 36th consecutive month as it registered 54.4 percent, a decrease of 2.9 percentage points when compared to April's reading of 57.3 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
A PMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy. The May PMI indicates that both the overall economy and the manufacturing sector are growing.
"The past relationship between the PMI and the overall economy indicates that the average PMI for January through May (55.7 percent) corresponds to a 4.7 percent increase in real gross domestic product (GDP). In addition, if the PMI for May (54.4 percent) is annualized, it corresponds to a 4.2 percent increase in real GDP annually."
marketing@alchempro.com
