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Purchasing Managers Index: Difference between revisions
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== '''ISM''' == | == '''ISM''' == | ||
=== June 2023 === | |||
==== Manufacturing ==== | |||
The June Manufacturing PMIregistered 46 percent, 0.9 percentage point lower than the 46.9 percent recorded in May. Regarding the overall economy, this figure indicates a seventh month of contraction after a 30-month period of expansion. <ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/june/</ref> | |||
"The U.S. manufacturing sector shrank again, with the Manufacturing PMI losing ground compared to the previous month, indicating a faster rate of contraction. The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens. Demand eased again, with the (1) New Orders Index contracting but at a slower rate, (2) New Export Orders Index moving into contraction and (3) Backlog of Orders Index remaining at a level not seen since early in the coronavirus pandemic (May 2020). A potential bright spot: The Customers’ Inventories Index dropped into ‘too low’ territory, a positive for future production." | |||
* The New Orders Index remained in contraction territory at 45.6 percent, 3 percentage points higher than the figure of 42.6 percent recorded in May. | |||
* The Production Index reading of 46.7 percent is a 4.4-percentage point decrease compared to May’s figure of 51.1 percent. | |||
* The Prices Index registered 41.8 percent, down 2.4 percentage points compared to the May figure of 44.2 percent. | |||
* The Employment Index dropped into contraction, registering 48.1 percent, down 3.3 percentage points from May’s reading of 51.4 percent. | |||
Insights from Tim Fiore, the Institute For Supply Management’s Committee Chair for the Manufacturing Report<ref>https://www.youtube.com/watch?v=20mrqPg8roo&list=PLIsv7Ve1Rbq88YTG_byxd6mrb-zFQuemy&index=1</ref> | |||
* Companies have burned off their backlogs of orders | |||
* Demand is non-existent, and new orders not coming in | |||
* Companies have started to take action to adjust cost structure, in June companies started to destaff. Dont expect to end throughout the summer, maybe Q4 | |||
* China and Europe’s assistance on new exports orders probably not happening for some time, as they are currently pretty weak | |||
* Dont see the bottom yet for manufacturing | |||
==== Services ==== | |||
=== May 2023 === | === May 2023 === | ||