The United States manufacturing industry is growing at a faster pace that what most analysts had predicted. In fact, the Institute of Supply Management (ISM) recently rated the market with a 57.7% PMI, which is 17% higher from January’s rating of 56%. This marks the 93 consecutive month in which the country’s manufacturing sector has expanded, indicating strong growth for the industry that was once in troubled waters just a few years prior.
“Comments from the panel largely indicate strong sales and demand, and reflect a positive view of business conditions with a watchful eye on commodities and the potential for inflation,” said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
The ISM also revealed that new orders index in the manufacturing sector had increased 4.7% over the past month to reach 65.1%. And the production index increased from 1.5% to 61.4%. Assuming these numbers accurate, the American manufacturing industry is currently at its highest peak since October 2014.
And there’s still more good news to come out of the manufacturing industry. Analysts say inventories of raw materials increased above the 50% threshold — indicating positive growth — to 51.5% in February.
Of course, there was also some negatives from the report, such as employment. The employment index dropped by 1.9% to 56.1%. Furthermore, the prices index remained relatively high at 68%, though analysts were quick to note that this was 1% lower than January’s reading of 67%. This reading means the prices for raw manufacturing materials had increased for one year straight.
To obtain these readings, the ISM looks at reports from 19 different manufacturing industries. Of those 18 industries, nearly all (17) had reported positive growth in February. More specifically, the industries reporting the strongest growth include textile mills, machinery, transportation equipment. So, which industry didn’t grow alongside the others? That was the furniture and furniture-related products industry, which apparently didn’t grow.
You don’t have to be a professional market analyst to realize these numbers paint a positive picture for the country’s manufacturing industry. While it slowed down just a couple years ago, leaving many people to believe that a recession was on the way, it quickly rebounded and it now stronger than ever. And with lawmakers aggressively working to “revitalize” the industry, it’s safe to assume we’ll see an even greater push in the American manufacturing industry.