ISA Voices: John Buckley has Good News
Everyone has been a bit excited to see the recent good news of the August increases in manufacturing activity in the U.S. For those who haven't seen the actual numbers sparking the first piece of optimistic news in over 18 months, let me repeat them here.
The Institute for Supply Management's PMI Index for August jumped from 48.9 to 52.9, the biggest monthly increase since June, 2007. New Orders jumped 10% during the month of August to 64.9, the highest level since December 2004.
The indices are calculated on a simple formula that says an index of 50 means the activity is neutral, not growing or contacting. As the index increases above 50, the activity in that areas is expanding; as it moves below 50 it is contracting. The further the index is away from 50, the greater the increase or contraction.
It is too soon to celebrate the end of the biggest downturn in the U.S. economy since the big one of the 1930s. But it seems the economy is moving in the right direction.
Numbers are the only way to measure performance, and there are more numbers and reports available than most managers could ever use.
But did you know that ISA publishes a monthly report using the same index approach of the Institute for Supply Management? It creates an overall business activity index for manufacturers and distributors.
In addition, it creates an index for 10 individual components of business activity such as orders received, inventory levels and sales revenue. The new customized database-driven version of the report allows for tracking the indices of customers (Institute for Supply Management), distributor and manufacturer activity on separate or combined graphs.
Another part of the new report will allow you to compare your performance and activity on a regional, company size and product basis. Sound too good to be true? View a sample report by clicking this link and clicking the "Create Reports" button.
Interested in filling out a short survey each month to have access to the information? Contact me at jbuckley@isapartners.org.
Our Promise to ISA Members
ISA's e-Store
ISA’s industry-leading reports are ISA member benefits. Members who desire additional reports, and non-members who wish to purchase these reports, can do so online via our e-Store.
