Precision Machining Indications from September ISM Report

“Manufacturing continued its growth in September as the PMI registered 51.6 percent, an increase of 1 percentage point when compared to August’s reading of 50.6 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.”-  September 2011 ISM Report.

The view in the marketplace for precision machined products is somewhat less clear.

Here is a look at the ISM indicators for Fabricated Metals Manufacturing in September.

(Precision machining is a component of Fabricated Metals Manufacturing- the Fab Metal data reflects our machining industries.)

The ISM September 2011 data for Fabricated Metal Manufacturing shows:

• New Orders- Growth
• Production- Increase
• Employment- Decrease
• Deliveries- Faster
• Inventories- Decrease
• Customer’s Inventories- Too High
• Prices- Fab Metals is only industry reporting lower prices (as well as higher prices)
• Order Backlog- Increase
• New Exports- Increase
• Imports of Materials- Increase

It may not feel like Christmas,  but only two of the above ten indicators  (Customer’s Inventories and Employment) were negative for Fab Metals and Precision Machining.

You can access the full ISM Report for September here.