KPI – July 2024: Recent Vehicle Recalls
KPI – July 2024: State of Business – Automotive Industry
KPI – July 2024: State of Economy
KPI – July 2024: Consumer Trends
State of Manufacturing
Economic activity in the manufacturing sector contracted in June for the third consecutive month and the 19th time during the last 20 months, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®. The Manufacturing PMI® registered 48.5% in June, down 0.2 percentage point from a month prior.
“U.S. manufacturing activity continued in contraction at the close of the second quarter. Demand was weak again, output declined and inputs stayed accommodative,” says Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee.
According to Fiore, “demand remains subdued,” as companies demonstrate an unwillingness to invest in capital and inventory due to current monetary policy and other conditions. Data shows production execution was down compared to the previous month, likely causing revenue declines and applying pressure to profitability. He also noted suppliers continue to have capacity, with lead times improving and shortages not as severe.
“[Approximately] 62% of manufacturing gross domestic product (GDP) contracted in June, up from 55% in May. More concerning is the share of sector GDP registering a composite PMI® calculation at or below 45% – a good barometer of overall manufacturing weakness – was 14% in June, 10 percentage points higher than the 4% reported in May,” Fiore explains.
Caption: Ford’s lineup of F-Series trucks, including the F-150, F-150 Lightning EV, F-250 and F-350 – are perennial favorites among fleet and retail consumers alike. To date, Ford has sold 352,406 vehicle units – earning the Full-Size Truck Best Buy of 2024 award. “It’s popular because it’s so good,” according to Kelly Blue Book.
Important Takeaways, Courtesy of the Manufacturing ISM® Report On Business®:
- Demand slowing was reflected by the (1) New Orders Index improving to marginal contraction, (2) New Export Orders Index returning to contraction, (3) Backlog of Orders Index dropping into stronger contraction territory and (4) Customers’ Inventories Index moving into the low side of the “just right” range, neutral for future production.
- Output (measured by the Production and Employment indexes) declined compared to May, with a combined 3.5-percentage point downward impact on the Manufacturing PMI® calculation. Panelists’ companies reduced production levels month-over-month as headcount reductions continued in June.
- Inputs – defined as supplier deliveries, inventories, prices and imports – continued to accommodate future demand growth.
- The Prices Index eased but remained in expansion (or “increasing”) territory; meanwhile, the index registered its second month of cooling increases.
