Manufacturing index shows steady growth

The Institute for Supply Management-Milwaukee has calculated the October seasonally adjusted Production Manufacturing Index at 55.
A PMI above 50 indicates growth. The index has shown consistent growth for the last 12 months, with a PMI of 56 in October 2010 starting this trend.
Marquette University’s Center for Supply Chain Management took over regional PMI calculation duties for ISM-Milwaukee in June, said Douglas Fisher, faculty and director of the CSCM.
“I thought it might be good for MU students to do this,” Fisher said. “It goes out and asks participants…what’s going on in the area of production level—is it higher, the same or lower?”
The PMI tracks new orders, production, employment and supplier deliveries, he said. Employment was growing, at 61.3 in October, with 61.8 in blue collar and 51.8 in white collar jobs.
In addition, commodity price indexes were calculated, and none of the commodities were reported as being in short supply.
The survey also asks for feedback from survey respondents.
This month, responses indicated the automotive industry remains strong, pushing one manufacturer to plant capacity. In addition, freight costs are rising but fuel isn’t the cause, so it could be a long-term trend. Finally, the economic meltdown in Greece has caused concern about European markets and business activity has been flat as a result of economic deterioration, according to the respondents.
Milwaukee’s regional manufacturing index does not figure into the national ISM Production Manufacturing Index, but they are calculated in the same way.
The national PMI for October was 50.8, showing slight growth. Milwaukee’s PMI has been trending above the national growth index for about the last two years, Fisher said.