Inventories

Manufacturers' inventories grew for the sixth consecutive month in December, but at a slower rate as the Inventories Index registered 51.8 percent. The index is 4.9 percentage points lower than the 56.7 percent reported in November. An Inventories Index greater than 42.6 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The six industries reporting higher inventories in December — listed in order — are: Apparel, Leather & Allied Products; Textile Mills; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; and Chemical Products. The eight industries reporting decreases in inventories in December — listed in order — are: Nonmetallic Mineral Products; Furniture & Related Products; Printing & Related Support Activities; Paper Products; Miscellaneous Manufacturing; Transportation Equipment; Primary Metals; and Plastics & Rubber Products.

Customers' Inventories*

The ISM Customers' Inventories Index registered 40 percent in December, 5.5 percentage points lower than in November when the index registered 45.5 percent. This is the 21st consecutive month the Customers' Inventories Index has been below 50 percent, indicating that respondents believe their customers' inventories are too low at this time.

The two manufacturing industries reporting customers' inventories as being too high during December are: Textile Mills and Miscellaneous Manufacturing. The 11 industries reporting customers' inventories as too low during December — listed in order — are: Printing & Related Support Activities; Machinery; Plastics & Rubber Products; Computer & Electronic Products; Primary Metals; Chemical Products; Nonmetallic Mineral Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; and Fabricated Metal Products.