Economic activity in the manufacturing sector expanded in September for the 16th consecutive month, and the overall economy grew for the 64th 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®(ISM®)Manufacturing Business Survey Committee. “The September PMI® registered 56.6 percent, a decrease of 2.4 percentage points from August’s reading of 59 percent, indicating continued expansion in manufacturing. The New Orders Index registered 60 percent, a decrease of 6.7 percentage points from the 66.7percent reading in August, indicating growth in new orders for the 16th consecutive month. The Production Index registered 64.6 percent, 0.1 percentage point above the August reading of 64.5 percent. The Employment Index grew for the 15th consecutive month, registering 54.6 percent, a decrease of 3.5 percentage points below the August reading of 58.1 percent. Inventories of raw materials registered 51.5 percent, a decrease of 0.5 percentage point from the August reading of 52 percent, indicating growth in inventories for the second consecutive month. Comments from the panel reflect a generally positive business outlook, while noting some labor shortages and continuing concern over geopolitical unrest.”
Of the 18 manufacturing industries, 15 are reporting growth in September in the following order: Wood Products; Primary Metals; Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Furniture & Related Products; Fabricated Metal Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Computer & Electronic Products; Paper Products; Chemical Products; Transportation Equipment; Petroleum & Coal Products; and Textile Mills. The three industries reporting contraction in September are: Machinery; Plastics & Rubber Products; and Electrical Equipment, Appliances & Components.
- “Business seems to be picking-up as fuel prices drop. More disposable income at the C store level where many of our products are sold.” (Food, Beverage & Tobacco Products)
- “Warehouse and multi-family construction seems to be continuing strong.” (Fabricated Metal Products)
- “World political unrest is creating additional defense requirements.” (Transportation Equipment)
- “We are seeing shipments up, year-over-year, in the 8 to10 percent range for last couple of months. This is good.” (Apparel, Leather & Allied Products)
- “Seen an increase in sales due to government fiscal year-end.” (Computer & Electronic Products)
- “Demand is pretty good overall. Freight continues to be a major issue.” (Chemical Products)
- “Things are a bit slower than the first half.” (Printing & Related Support Activities)
- “Outlook is very good. Demand seems to be growing.” (Paper Products)
- “Our search continues for good machinists and electrical engineers.” (Machinery)
- “Overall, orders are at the strongest point this year.” (Miscellaneous Manufacturing)
The complete report is available at ISM.