Purchasing Managers Index highest since 2011

The manufacturing sector expanded in September, the fourth consecutive month, to its highest point since April 2011, according to a new Purchasing Managers Index report issued by the Institute for Supply Management.

The report – “Manufacturing ISM Report On Business®” – added that the U.S. economy grew for the 52nd consecutive month.

Eleven of 18 manufacturing industries reported a rise in Purchasing Managers Index readings in September, in the following order:

  1. Electrical Equipment
  2. Appliances & Components
  3. Food, Beverage & Tobacco Products
  4. Furniture & Related Products
  5. Petroleum & Coal Products
  6. Fabricated Metal Products
  7. Paper Products
  8. Printing & Related Support Activities
  9. Transportation Equipment
  10. Computer & Electronic Products
  11. Machinery
  12. Plastics & Rubber Products

The following industries reported contraction in September (in order):

  1. Apparel
  2. Leather & Allied Products
  3. Primary Metals
  4. Textile Mills
  5. Nonmetallic Mineral Products
  6. Miscellaneous Manufacturing
  7. Chemical Products

The Purchasing Managers Index (PMI) registered 56.2 in September, up half a percentage point compared to August’s 55.7%. Last month’s PMI was the highest of the year. The average PMI for the third quarter was 55.8%.

The September New Orders Index fell 2.7 percentage points to 60.5%.

The Production Index rose by 0.2 percentage point to 62.6%.

The Employment Index increased 2.1 percentage points to 55.4%, the year’s highest reading.

MANUFACTURING AT A GLANCE
SEPTEMBER 2013
Index Series
Index
Sep
Series
Index
Aug
Percentage
Point
Change
Direction Rate
of
Change
Trend*
(Months)
PMI™ 56.2 55.7 +0.5 Growing Faster 4
New Orders 60.5 63.2 -2.7 Growing Slower 4
Production 62.6 62.4 +0.2 Growing Faster 4
Employment 55.4 53.3 +2.1 Growing Faster 3
Supplier Deliveries 52.6 52.3 +0.3 Slowing Faster 3
Inventories 50.0 47.5 +2.5 Unchanged From Contracting 1
Customers’ Inventories 43.0 42.5 +0.5 Too Low Slower 22
Prices 56.5 54.0 +2.5 Increasing Faster 2
Backlog of Orders 49.5 46.5 +3.0 Contracting Slower 5
Exports 52.0 55.5 -3.5 Growing Slower 10
Imports 55.0 58.0 -3.0 Growing Slower 8
OVERALL ECONOMY Growing Faster 52
Manufacturing Sector Growing Faster 4

*Number of months moving in current direction.

The authors of the report wrote “Comments from the panel are generally positive and optimistic about increasing demand and improving business conditions.”

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