Economic activity in the manufacturing sector expanded in September for the fourth consecutive month, and the overall economy grew for the 52nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 56.2 percent, an increase of 0.5 percentage point from August’s reading of 55.7 percent. September’s PMI™ reading is the highest of the year, leading to an average PMI™ reading of 55.8 percent for the third quarter. The New Orders Index decreased in September by 2.7 percentage points to 60.5 percent, and the Production Index increased by 0.2 percentage point to 62.6 percent. The Employment Index registered 55.4 percent, an increase of 2.1 percentage points compared to August’s reading of 53.3 percent, which is the highest reading for the year. Comments from the panel are generally positive and optimistic about increasing demand and improving business conditions.”
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.
WHAT RESPONDENTS ARE SAYING …
“Global sales generally trending moderately higher.” (Textile Mills)
“Slight increase in demand. Forecast looks better. 4Q looking better than 3Q — should begin to see demand increase in October/November.” (Food, Beverage & Tobacco Products)
“Raw materials shortages continue. General trends are up, which enhances shortage issues.” (Wood Products)
“Overall business is flat to down across the board.” (Machinery)
“Housing continues to improve, resulting in improved conditions for our industry.” (Furniture & Related Products)
“Rising costs of China labor has us re-evaluating our current position in that country.” (Computer & Electronic Products)
“Steady increase in work this month.” (Primary Metals)
“Overall business is picking up.” (Transportation Equipment)
“Outlook remains strong with housing market and customer orders.” (Electrical Equipment, Appliances & Components)
“Labor rates along the Gulf Coast are rising with the increased activity of construction and maintenance projects.” (Chemical Products)
|MANUFACTURING AT A GLANCESEPTEMBER 2013|
|Index||Series IndexSep||Series IndexAug||PercentagePointChange||Direction||Rate of Change||Trend* (Months)|
|Customers’ Inventories||43.0||42.5||+0.5||Too Low||Slower||22|
|Backlog of Orders||49.5||46.5||+3.0||Contracting||Slower||5|
|OVERALL ECONOMY Manufacturing Sector||Growing||Faster||52|
*Number of months moving in current direction
COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY
Commodities Up in Price
Aluminum; Aluminum Based Products; Caustic Soda; Corrugated Boxes (14); HDPE Resin; Metal Parts; Oil (3); Plastic Resin (3); and Steel Based Products.
Commodities Down in Price
Corn (2); and Latex.
Commodities in Short Supply
No commodities are reported in short supply.
Note: The number of consecutive months the commodity is listed is indicated after each item.
The full report is available at http://www.ism.ws/