TEMPE, AZ — Economic activity in the manufacturing sector expanded in September, and the overall economy grew for the 100th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:
- The September PMI registered 60.8 percent, an increase of 2 percentage points from the August reading of 58.8 percent
- The New Orders Index registered 64.6 percent, an increase of 4.3 percentage points from the August reading of 60.3 percent
- The Production Index registered 62.2 percent, a 1.2 percentage point increase compared to the August reading of 61 percent
- The Employment Index registered 60.3 percent, an increase of 0.4 percentage point from the August reading of 59.9 percent
- The Supplier Deliveries Index registered 64.4 percent, a 7.3 percentage point increase from the August reading of 57.1 percent
- The Inventories Index registered 52.5 percent, a decrease of 3 percentage points from the August reading of 55.5 percent
- The Prices Index registered 71.5 percent in September, a 9.5 percentage point increase from the August level of 62, indicating higher raw materials prices for the 19th consecutive month
It was the PMI's highest reading since May of 2004.
Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all growing in September; as well as, supplier deliveries slowing (improving) and inventories growing at a slower rate during the period. The Customers’ Inventories Index remains at low levels.
Of the 18 manufacturing industries, 17 reported growth in September, in the following order: Textile Mills; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Plastics & Rubber Products; Paper Products; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; and Primary Metals. One industry, Furniture & Related Products, reported contraction in September compared to August.