Manufacturing Index Report Offers a Dim Outlook
On Monday, the Institute for Supply Management reported that the manufacturing index dropped to 49.7. May’s index came in at 53.5, naming June’s 49.7 reading the lowest since July of 2009, a month after the recession was said to have officially ended. The Institute for Supply Management also notes any readings below 50 mark shrinkage.
While the manufacturing industry has helped the economy promote growth ever since the Great Recession came to a close, its job market has started to weaken along with global expansion. As a result of Americans limiting their spending, the demand for manufactured goods has lowered. U.S. exports have also been negatively affected by the European recession. The slow manufacturing growth in China has put a damper on the U.S. manufacturing index as well.
The Institute for Supply Management’s estimate for new orders also shrank from 60.1 to 47.8, the first time it has dropped beneath 50 since April of 2009. These reports may offer a projection of the next few months as well, with the manufacturing sector expected to continue to weaken. Production also reportedly slowed to a three year low along with factories reporting less demand overseas. However, this is most likely due to the dismal state of Europe’s economy.
Employment, on the other hand, decreased but lingered at a positive level of 56.6, suggesting manufacturers are still hiring. Amidst such a dim outlook, the fact that factories may continue to add jobs offers a light at the end of the tunnel. So, perhaps now is the best time then to make the most of the staff you have and enhance their industrial skill sets. With industrial skills training your workforce is able to advance their current manufacturing skills sets while on the job. ITC Learning offers industrial training in a variety of formats to ensure each adult learner is able to fully comprehend the modules and further their careers. Contact ITC Learning today to learn more about how your plant can benefit from industrial skills training.