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
- Plastics & Rubber Products
The following industries reported contraction in September (in order):
- 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|
|Customers’ Inventories||43.0||42.5||+0.5||Too Low||Slower||22|
|Backlog of Orders||49.5||46.5||+3.0||Contracting||Slower||5|
*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.”