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
IndexSeries
Index
Sep
Series
Index
Aug
Percentage
Point
Change
DirectionRate
of
Change
Trend*
(Months)
PMI™56.255.7+0.5GrowingFaster4
New Orders60.563.2-2.7GrowingSlower4
Production62.662.4+0.2GrowingFaster4
Employment55.453.3+2.1GrowingFaster3
Supplier Deliveries52.652.3+0.3SlowingFaster3
Inventories50.047.5+2.5UnchangedFrom Contracting1
Customers’ Inventories43.042.5+0.5Too LowSlower22
Prices56.554.0+2.5IncreasingFaster2
Backlog of Orders49.546.5+3.0ContractingSlower5
Exports52.055.5-3.5GrowingSlower10
Imports55.058.0-3.0GrowingSlower8
OVERALL ECONOMYGrowingFaster52
Manufacturing SectorGrowingFaster4

*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.”