The US manufacturing sector finished 2016 on a high point. The Institute for Supply Chain Management (ISM) reported that the PMI, the index by which they measure growth, was at 54.7 in December. This was an increase over November and the highest reading of the year. New orders showed a 7.2 percent gain in December, a remarkable increase over November’s 0.9 percent increase.
The momentum from 2016 rolled into January, which finished with a PMI of 56%. As new orders continue to grow, 12 of the 18 manufacturing industries are reporting growth early in the year. The ISM reports that the manufacturing sector is optimistic about growth in 2017; revenues in 16 manufacturing industries are expected to increase over the course of the year and 67% of survey respondents expect revenues in 2017 to be higher than in 2016. January also showed a growth in employment, up 1.5 percentage points from December.
According to PricewaterhouseCoopers annual Manufacturing Barometer, 57% of industrial manufacturing panelists are optimistic about the 12 month outlook for the US economy. Additionally, PwC reports that 60% of US industrial manufacturers surveyed are planning on major new investments of capital over the course of 2017 with 33% planning on facilities expansion.
Sources: PwC Manufacturing Barometer, Modern Materials Handling, ISM