The ISM Manufacturing Report is out. PMI is at 55.7%.
The biggest element to note in the survey is the 6.9% jump in employment for manufacturing to 53.1. While inventories are still contracting, this implies firms are finally ramping up with new production. The employment index has been below 50 (which means contracting) for over a year.
Before you get your panties all in a bunch, bear in mind these companies will first call back laid off workers and manufacturing has lost millions of jobs. Also note new orders is down from last month, although still expanding.
|MANUFACTURING AT A GLANCE OCTOBER 2009|
|Customers' Inventories||38.5||39.0||-0.5||Too Low||Faster||7|
|Backlog of Orders||53.5||53.5||0.0||Growing||Same||3|