Tuesday, June 1, 2021

Manufacturing Rises PMI Up to 61.2% for May 2021

The ISM's index of national factory activity increased to a reading of 61.2 last month from 60.7 in April. This would mark the 12 month of overall expansion. You can look on the PMI site and find some of the following highlights from the main page (ISM May 2021): 

-Demand expanded, with the (1) New Orders Index growing at a strong level, supported by the New Export Orders Index continuing to expand, (2) Customers’ Inventories Index hitting another all-time low and (3) Backlog of Orders Index continuing at a record-high level.

-Consumption (measured by the Production and Employment indexes) indicated slowing expansion, posting a combined 8.2-percentage point decrease to the Manufacturing PMI® calculation.

-Inputs — expressed as supplier deliveries, inventories, and imports — continued to support input-driven constraints to production expansion, at higher rates compared to April, due to continued trouble in supplier deliveries.

You should really take a look at the site because there are lots of detail and highlights on manufacturing in the country. One thing is supply and labor issues. This is where companies can invest in improved productivity and in turn digitization of industries or they can go to a low cost alternative (American-Mexican partnerships as an option. Don't forget donations to the orphans I keep trying to help!) 

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