ISM: September Manufacturing Index Highest Since April 2011
The Institute for Supply Management said economic activity in the manufacturing sector expanded in September for the fourth consecutive month, and the overall economy grew for the 52nd consecutive month.
The Purchasing Managers Index (PMI) registered 56.2%, an increase of 0.5 percentage point from August’s reading of 55.7%. September’s PMI reading is the highest of the year, leading to an average PMI reading of 55.8% for the third quarter, and is the highest reading since the 59.4% reached in April 2011.
A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
The New Orders Index decreased in September by 2.7 percentage points to 60.5%, and the Production Index increased by 0.2 percentage points to 62.6%. The Employment Index registered 55.4%, an increase of 2.1 percentage points compared to August’s reading of 53.3%, which is the highest reading for the year.
Of the 18 manufacturing industries, 11 are reporting growth 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; and Plastics & Rubber Products.
The six industries reporting contraction in September — listed in order — are: Apparel, Leather & Allied Products; Primary Metals; Textile Mills; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Chemical Products.
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