Milwaukee-area manufacturing activity continued to grow at a strong, though slightly slower, pace in August.
The Marquette-ISM Report on Manufacturing showed the seasonally adjusted Purchasing Managers Index was at 59.6 in August, down from 63.9 in July.
Any number above 50 indicates growth, while below 50 signals contraction. The PMI has measured above 50 for 10 of the past 12 months.
Respondents in the August survey said:
- “High beef and pork prices.”
- “Longer lead time on custom materials.”
- “Lead time expectations too short.”
- “Local business conditions, price changes.”
- “On track to end the year 3 to 4 percent above last year if business continues as it has for the rest of the year.”
New orders, production and employment were all growing on a seasonally adjusted basis, while supplier deliveries were growing more slowly and inventories were declining. On an unadjusted basis, customers’ inventories were declining, while prices, backlog of orders, exports and imports were growing in August.
Regarding the indices, respondents said:
- “Lower orders from markets.”
- “Supplier performance measurement and improvement.”
- “The greatest impact at this time is on-time deliveries from a couple of suppliers. I believe this is a short-term problem.”
- “The greatest issue today is supplier lead times complicated by transportation and issues at the port.”
- “We just started marketing more export business.”
- “I look at the trends and make projections on inventory.”
Blue collar employment was growing on a seasonally adjusted basis, at 60.4, compared to 56.7 in July. And white collar employment was growing more slowly, at 53.7, down from 53.9 in July.
About employment, those surveyed said:
- “Having a problem finding good quality workers.”
- “Customer service a problem as well.”
In the six-month outlook on business conditions, 45 percent expected positive conditions for the next six months, 50 percent expect the same conditions and 5 percent expect worse conditions. It’s a more positive reading than in July.
