The manufacturing sector grew for the 28th consecutive month this September, and the overall economy grew for the 47th consecutive month, according to the Institute for Supply Management's Report on Business.

In response to the report, ISM chair Norbert Ore said, "...The PMI made a strong move to the upside as new orders and production rose significantly. This move was supported by slower deliveries and growing order backlogs. While energy prices and the impact from Hurricane Katrina are major concerns, the manufacturing sector has regained significant momentum."

The 16 industries reporting growth in September, listed in order, are: paper; wood and wood products; electronic components and equipment; apparel; tobacco; furniture; chemicals; instruments and photographic equipment; transportation and equipment; food; primary metals; textiles; rubber and plastic products; fabricated metals; printing and publishing; and industrial and commercial equipment and computers.

The PMI for September registered 59.4 percent, an increase of 5.8 percentage points from August's 53.6 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding, according to the report. And a PMI in excess of 42.7 percent over a period of time generally indicates an expansion of the overall economy. The September PMI indicates that both the overall economy and the manufacturing sector are growing.

ISM's New Orders Index grew, with a reading of 63.8 percent—7.4 percentage points higher than August. Also, September is the 29th consecutive month that the index exceeded 50 percent. A New Orders Index higher than 51.1 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders.

ISM's Production Index was 63.1 percent in September, 7.2 percentage points higher than August, and also registered as the 29th consecutive month of growth in that area. Over time, an index above 50 percent is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.

The Prices Index jumped 15.5 percent, to 78 percent, for September, a significant jump that follows July to August's increase of 14 percentage points. In September, 60 percent of supply executives reported paying higher prices, and 4 percent reported paying lower prices, while 36 percent reported that prices were unchanged from the preceding month. A Prices Index above 47.1 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics Index of Manufacturers Prices.