Manufacturing Output

Channel News Asia  Aug 24  Comment 
SINGAPORE: Manufacturing output slowed for a second consecutive month in July, dragged down by a decline in five out of six clusters, according to preliminary figures released by the Economic Development Board (EDB) on Friday (Aug 24)....  Aug 19  Comment 
Data shows sector starved of investment and losing ground as Brexit uncertainty persists Britain’s manufacturing industry has fallen to ninth in the world behind France, reversing a recovery in its performance since the financial crash. The...
Reuters  Aug 15  Comment 
U.S. industrial production edged higher in July, boosted by higher manufacturing output in a positive sign for economic growth.
Channel News Asia  Jul 26  Comment 
SINGAPORE: Singapore's manufacturing output increased 7.4 per cent in June compared to a year ago, according to figures released by the Economic Development Board (EDB) on Thursday (Jul 26). June’s jump continues an upward trend after...
Channel News Asia  Jun 26  Comment 
SINGAPORE: Singapore's manufacturing output increased 11.1 per cent in May from a year ago, according to figures released by the Economic Development Board (EDB) on Tuesday (Jun 26).  May's jump continues an upward trend after manufacturing...  Jun 11  Comment 
All the day’s economic and financial news, as investors digest a ‘torrid weekend’ for free trade Biggest fall in UK manufacturing output since 2012 UK trade gap has widened Earlier: FTSE 100 opens higher despite G7...
Channel News Asia  May 25  Comment 
SINGAPORE: Singapore’s manufacturing output rose 9.1 per cent in April from a year ago, according to figures released by the Economic Development Board (EDB) on Friday (May 25). April's jump continues an upward trend after manufacturing output...
BBC News  Apr 11  Comment 
Economists had forecast a 0.2% rise in industrial and manufacturing output for February.


Manufacturing output refers to the total inflation-adjusted value of output produced by manufacturers.[1] Announcements of manufacturing output include month-over month and year-over-year changes in manufacturing production. The manufacturing sector accounts for almost 80% of total Industrial Production and tends to have a big impact on market behavior. It is a leading indicator of economic health as manufacturing output reacts quickly to ups and downs in the business cycle.

Measures of Manufacturing Output

ISM Manufacturing Composite Index

The ISM Manufacturing Composite Index is released monthly by the Institute of Supply Management which tracks the amount of manufacturing activities in the previous month. Data for the index comes from a monthly survey done by purchasing managers from approximately 300 manufacturing firms of 21 industries in 50 states. Queries in the survey includes general direction of production, new orders, order backlogs, manufacturers' inventories, customers' inventories, employment, supplier deliveries, exports, imports, and prices. The five equally weighted components that form the composite consist of new orders, production, employment, supplier deliveries, and the manufacturer's inventories. The index value ranges between 0 and 100. Whenever the index value falls below 50, it tends to indicate an economic recession, especially when the trend continues for several months consecutively. A value substantially above 50 most likely means a time of economic growth.[2]

Why is it important?

Manufacturing Output reacts quickly to ups and downs in the business cycle, and is correlated with consumer conditions like unemployment rates and earnings. The ISM manufacturing index gives a detailed picture of the manufacturing sector such as the level of activities and the general direction of the manufacturing industry. Since the manufacturing industry contributes to majority of the cyclical variability in the economy, the index has a big influence on the markets. Some of the ISM sub-indices provide insights into commodity prices and signals for potential inflation developing. If the index increases too rapidly, this may lead to excessive consumption and inflation pressure. Hence, the Federal Reserve monitors this report closely as it helps to determine the direction of interest rates when inflation signals are flashing in the data provided. Therefore, the bond market is also highly sensitive to this report.[3]


  1. ForexFactory: Calendar
  2. Econoday: 2010 Economic Calendar
  3. Econoday: 2010 Eonomic Calendar
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