ISM

Even though the manufacturing and service sectors have been on diverging paths in 2023, with manufacturing having contracted for 13 consecutive months and services having grown for 11 consecutive months, respectively, through November,one common theme they share is expectations for growth in 2022. That is a key takeaway from the Institute for Supply Management’s (ISM) December 2023 Semiannual Economic Forecast.

The Services PMI—at 52.7 (a reading of 50 or higher signals growth)—increased 0.9, growing, at a faster rate, for the 11th consecutive month. ISM said that the services sector has seen growth in 41 of the last 42 months, with December 2022 being the one month with a decline. 

The report’s benchmark metric, the PMI, matched October’s reading, at 46.7 (a reading of 50 or higher indicates growth), contracting, at the same rate, for the 13th consecutive month. The past 13 months of contraction were preceded by a stretch of 28 consecutive months of growth. ISM also said that the overall economy contracted in November, at the same rate, for the second consecutive month, which was preceded by 30 consecutive months of growth.

The report’s benchmark metric, the PMI increased 1.2%, to 46.7 (a reading of 50 or higher indicates growth), contracting, at a slower rate, for the 12th consecutive month. The past ten months of contraction were preceded by a stretch of 28 consecutive months of growth. ISM also said that the overall economy contracted in October, following growth in September, which was preceded by 30 consecutive months of growth.

The Services PMI, at 54.5 (a reading of 50 or higher signals growth), increased 1.8%, growing, at a faster rate, for the eighth consecutive month. ISM said that the services sector has seen growth in 38 of the last 39 months, with December 2022 being the one month with a decline. 

The report’s benchmark metric, the PMI increased 1.2%, to 47.6 (a reading of 50 or higher indicates growth), contracting, at a slower rate, for the tenth consecutive month. The past ten months of contraction were preceded by a stretch of 29 consecutive months of growth.

The report’s key metric, the PMI, eked out a 0.4% increase, to 46.4 (a reading of 50 or higher indicates growth), contracting, at a slower rate, for the ninth straight month.

The Services PMI—at 53.9 (a reading of 50 or higher signals growth) increased 3.6%, growing, at a faster rate, for the sixth consecutive month. ISM said that the services sector has seen growth in 36 of the last 37 months, with December 2022 being the one month with a decline. 

The report’s key metric, the PMI, fell 0.9%, to 46 (a reading of 50 or higher indicates growth). The past eight months of contraction, through June, were preceded by a stretch of 29 consecutive months of growth. ISM also said that the overall economy contracted, at a faster rate, in May, for the eighth consecutive month, which was preceded by 30 consecutive months of growth.

To better manage through the constrained labor market, logistics operations are courting more women and other diverse job candidates; ramping up their training programs; investing in automation; and ensuring that positions offer the work-life balance that many new recruits are seeking.

The Services PMI—at 50.3 (a reading of 50 or higher signals growth)—fell 1.6% off of May’s 51.9 reading, growing, at a slower rate, for the fifth consecutive month. ISM said that the services sector has seen growth in 35 of the last 36 months, with December 2022 being the one month with a decline. 

The report’s key metric, the PMI, registered a 46.9 reading (a reading of 50 or higher indicates growth), falling 0.2% off of April’s 47.1 reading.

Respondents were asked to rank performance roadblocks on a scale of 1 to 7, with 1 not at all and 7 representing to a very large extent. People scored between a 4 and 5, just outpacing technology, tasks and structure. All the answers scored higher than a 4, indicating procurement professionals are facing a series of challenges in performing their jobs.

While growth is expected to remain in the cards, for the manufacturing and services sectors, over the balance of 2023, it is no longer set to expand at the same rates as were previously indicated, according to the  “Spring 2023 Semiannual Economic Forecast,” which was issued this week by the Institute for Supply Management (ISM).

The Services PMI—at 51.9 (a reading of 50 or higher signals growth)—increased 0.7% over March’s 51.2, growing, at a faster rate, for the fourth consecutive month. ISM said that the services sector has seen growth in 34 of the last 35 months, with December 2022 being the one month with a decline.