03 February 2003
U.S. manufacturing activity grows
Tempe, Arizona – Economic activity in the manufacturing sector grew for the third consecutive month. The overall economy grew for the 15th consecutive month, say the nation's supply executives in the latest Manufacturing Institute of Supply Management (ISM) report on business.
The report was issued today by Norbert Ore, chair of the ISM Manufacturing Business Survey Committee and group director, strategic sourcing and procurement, Georgia-Pacific Corporation.
"The manufacturing sector continued its growth trend in January, though the rate of growth slowed when compared to December. It is encouraging that New Orders continued strong in January. Production also fared well, providing cause for optimism for an improving economy in the first quarter."
ISM's Backlog of Orders Index indicates that order backlogs declined for the seventh consecutive month. ISM's Supplier Deliveries Index reflects slower deliveries for the 13th consecutive month. Manufacturing employment continued to decline in January as the index remained below the breakeven point (an index of 50 percent) for the 28th consecutive month.
ISM's Prices Index is above 50 percent as manufacturers experienced higher prices for the 11th consecutive month. New Export Orders grew in January for the 13th consecutive month. January's Imports Index grew for the third consecutive month.
Comments from purchasing and supply executives offered some expressions of optimism while still expressing concerns about possible war. Adding to the list of concerns, energy prices are a major factor as oil and natural gas prices are skyrocketing.
See the entire report at: http://www.napm.org/ISMReport/ROB022003.htm
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