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:
- Electrical Equipment
- Appliances & Components
- Food, Beverage & Tobacco Products
- Furniture & Related Products
- Petroleum & Coal Products
- Fabricated Metal Products
- Paper Products
- Printing & Related Support Activities
- Transportation Equipment
- Computer & Electronic Products
- Machinery
- Plastics & Rubber Products
The following industries reported contraction in September (in order):
- Apparel
- Leather & Allied Products
- Primary Metals
- Textile Mills
- Nonmetallic Mineral Products
- Miscellaneous Manufacturing
- 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.”