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The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector grew in September, with the overall economy notching a fifth consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing grew in September, as the PMI registered 55.4 percent, 0.6 percentage point lower than the August reading of 56 percent.
ISM’s New Orders Index registered 60.2 percent in September, a decrease of 7.4 percentage points compared to the 67.6 percent reported in August. This indicates that new orders grew for the fourth consecutive month.
The Production Index registered 61 percent in September, 2.3 percentage points lower than the August reading of 63.3 percent, indicating growth for the fourth consecutive month.
ISM’s Employment Index registered 49.6 percent in September, 3.2 percentage points higher than the August reading of 46.4 percent. This is the 14th consecutive month of employment contraction, albeit at a slower rate compared to August.
The delivery performance of suppliers to manufacturing organizations was slower in September, as the Supplier Deliveries Index registered 59 percent.
The Inventories Index registered 47.1 percent in September, 2.7 percentage points higher than the 44.4 percent reported for August. Inventories contracted for the third straight month, but at a slower rate.
ISM’s Backlog of Orders Index registered 55.2 percent in September, a 0.6-percentage point increase compared to the 54.6 percent reported in August, indicating order backlogs expanded for the third consecutive month after four straight months of contraction.
Of the 18 manufacturing industries, 14 reported growth in September, in the following order: Paper Products; Wood Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Machinery; Textile Mills; Computer & Electronic Products; and Transportation Equipment. The four industries reporting contraction in September are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Petroleum & Coal Products; and Primary Metals.