PMI Rises To 62.5 Percent

April 9, 2004
Economic activity in the manufacturing sector grew in March for the 10th consecutive month, while the overall economy grew for the 29th consecutive month, according to the latest survey of purchasing managers by the Institute for Supply Management (ISM), Tempe, Ariz. ISM’s Purchasing Managers Index is 62.5 percent in March, an increase of 1.1 percentage points when compared to 61.4 percent in February.

Economic activity in the manufacturing sector grew in March for the 10th consecutive month, while the overall economy grew for the 29th consecutive month, according to the latest survey of purchasing managers by the Institute for Supply Management (ISM), Tempe, Ariz. ISM’s Purchasing Managers Index is 62.5 percent in March, an increase of 1.1 percentage points when compared to 61.4 percent in February.

“The manufacturing sector had another good month in March as the PMI has now been above the 60 percent mark for five consecutive months. Both new orders and production remain strong and have significant momentum going into the second quarter,” said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia Pacific Corp.

Comments from purchasing and supply managers are focused on higher energy and material costs, the availability of certain metals and the weaker dollar. As leadtimes extend, their concerns are shifting from cost issues to availability.

“The first quarter was very strong for the manufacturing sector and the economy overall,” added Ore. “Our survey respondents generally indiate that business is quite strong.”

All reporting industries reported growth. These include industrial and commercial equipment, electronic components and equipment, fabricated metals, transportation and equipment.

Ore said several commodities, including aluminum; steel; and steel, cold rolled are in short supply. Commodities reported up in price include aluminum; copper and copper products; electrical components; steel; steel, cold rolled; steel, galvanized; steel, flat rolled; steel, hot rolled; steel pipe, and steel scrap.