Manufacturing Has Recovered: Vendor Performance a Growing Problem

Note: The traffic this morning overwhelmed the graph server. I'm working with the provider, and it appears everything is OK now. Here is the Employment graph gallery.The May ISM Non-manufacturing index was at 54.6%, up from 52.8% in April. The employment index increased in May at 54.0%, up from 51.9% in April. Note: Above 50 indicates expansion, below 50 contraction.

Vendor performance was an emerging issue in 2010 and will become a problem for more businesses in 2011. If you got through last year without any difficulties, don’t be sure that you’ll be so lucky this year. If you did work through some issues last year, you may find that they worsen soon or that your solutions don’t “stick.” All companies that need other firms for critical supplies or services should analyze their situations.

By Michael Terry:Chinese manufacturing seems to be finding its footing after having been in the doldrums for quite some time. The HSBC Flash Purchasing Managers Index rose 0.80 in April to 49.1.As reported by Reuters: China's factories stabilised in April as output ticked higher, new business rose from multi-month lows and export orders perked up, though not sufficiently for a private sector survey of purchasing managers to flag a return to expansionary territory.

One Eyed Guide submits: That was one ugly Friday for economic reports. Among the slew of bad reports, the Reuters/Michigan Survey of Consumers declined so much that the survey director, Richard Curtin, stated: "Whenever the Expectations Index has been this low in the past, the economy has been in recession."Has the recession started?

Steven Hansen submits:The Institute of Supply Management released their February 2010 report on manufacturing showing a “less good” improvement in manufacturing. Norbert J. Ore, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee stated:

George Osborne will be handed an encouraging assessment of the state of the economy on Tuesday as a survey of businesses predicts that Britain will avoid a triple-dip recession, reports The Guardian.

WASHINGTON — A survey shows U.S. manufacturing activity expanded more slowly in March than February, held back by weaker growth in production and new orders. But factories hired at the fastest pace in nine months, an encouraging sign ahead of Friday’s report on March employment. The Institute for Supply Management said Monday that its index of factory activity slipped to 51.3 percent. The index fell from 54.2 percent in February, which was the fastest growth since June 2011. A reading above 50 indicates expansion. The index has signaled growth for four straight months.

WASHINGTON — A survey shows U.S. manufacturing activity expanded more slowly in March than February, held back by weaker growth in production and new orders. But factories hired at the fastest pace in nine months, an encouraging sign ahead of Friday’s report on March employment. The Institute for Supply Management said Monday that its index of factory activity slipped to 51.3 percent. The index fell from 54.2 percent in February, which was the fastest growth since June 2011. A reading above 50 indicates expansion. The index has signaled growth for four straight months.