Manufacturing activity in southeastern Wisconsin and northern Illinois grew more slowly in January, according to a new report.
The Marquette-ISM Report on Manufacturing showed the seasonally adjusted Purchasing Managers Index was at 51.60 in January, down from 57.61 in December. Manufacturers experienced record growth in November, with a reading of 70.25.
Any number more than 50 indicates growth, while less than 50 signals contraction. The PMI has measured more than 50 for 15 of the past 17 months.
In the January survey, respondents said:
- “There have been delays in both East and West Coast ports. These delays have been between two to three weeks in both coasts.”
- “Many companies had longer shut downs during the long holiday break, and when they came back to work at the New Year they began placing new orders.”
- “Orders are steady during the normal seasonal slump period.”
Production, employment, exports and imports grew in January. New orders, supplier deliveries, inventories, prices and backlog of orders all either declined or slowed their growth.
Regarding these indices, respondents said:
- “There is a strong belief that oil prices will increase.”
- “Major declines in the cost of gasoline and natural gas have yet to cause corresponding product prices (i.e. plastics, etc.) to fall.”
- “Driver shortages have led to reduced services on long haul LTL and rates are firm.”
- “Acrylic, also known as Plexiglas, went up approximately 3 percent to 5 percent during the beginning of the month.”
- “Steel mills have reduced the discount points to distribution making the net to customers higher.”
Seasonally adjusted blue collar employment increased from 52.6 in December to 57.3 in January, while seasonally adjusted white collar employment declined from 52.6 in December to 45.8 in January.
In the six-month outlook on business conditions, respondents indicated a downward shift in positive expectations compared with December. About 37.5 percent of respondents expect positive conditions over the next six months, 43.8 percent expect conditions to remain the same and 18.8 percent expect conditions to worsen within the next six months.
