Executive Briefings

September Sees Manufacturing Grow in U.S. After Several Months of Decline

Economic activity in the manufacturing sector expanded in September following three consecutive months of slight contraction, and the overall economy grew for the 40th consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in September as the PMI registered 51.5 percent, an increase of 1.9 percentage points when compared to August's reading of 49.6 percent.

ISM's New Orders Index registered 52.3 percent in September, which is an increase of 5.2 percentage points when compared to the August reading of 47.1 percent. This represents a return to growth in new orders following three consecutive months of contraction.

ISM's Production Index registered 49.5 percent in September, which is an increase of 2.3 percentage points when compared to the 47.2 percent reported in August. This indicates contraction in production for the second time since May 2009 when the Production Index registered 43.9 percent.

ISM's Employment Index registered 54.7 percent in September, which is 3.1 percentage points higher than the 51.6 percent reported in August. This is the 36th consecutive month of growth in the Employment Index.

The delivery performance of suppliers to manufacturing organizations was slower in September as the Supplier Deliveries Index registered 50.3 percent, which is 1 percentage point higher than the 49.3 percent reported in August. This is the first month that supplier deliveries have been slower than the previous month since January 2012.

The Inventories Index registered 50.5 percent in September, which is 2.5 percentage points lower than the 53 percent reported in August. This month's reading indicates that respondents are reporting inventories are growing for the second consecutive month, but at a slower rate than in August.

ISM's Backlog of Orders Index registered 44 percent in September, which is 1.5 percentage points higher than the 42.5 percent reported in August. This is the sixth consecutive month of contraction in order backlogs. Of the 18 manufacturing industries, 11 are reporting growth in September in the following order: Textile Mills; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Wood Products; Apparel, Leather & Allied Products; Paper Products; Petroleum & Coal Products; Primary Metals; Fabricated Metal Products; Furniture & Related Products; and Miscellaneous Manufacturing. The six industries reporting contraction in September - listed in order - are: Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Machinery; Chemical Products; and Computer & Electronic Products.

Source: Institute for Supply Management

Manufacturing expanded in September as the PMI registered 51.5 percent, an increase of 1.9 percentage points when compared to August's reading of 49.6 percent.

ISM's New Orders Index registered 52.3 percent in September, which is an increase of 5.2 percentage points when compared to the August reading of 47.1 percent. This represents a return to growth in new orders following three consecutive months of contraction.

ISM's Production Index registered 49.5 percent in September, which is an increase of 2.3 percentage points when compared to the 47.2 percent reported in August. This indicates contraction in production for the second time since May 2009 when the Production Index registered 43.9 percent.

ISM's Employment Index registered 54.7 percent in September, which is 3.1 percentage points higher than the 51.6 percent reported in August. This is the 36th consecutive month of growth in the Employment Index.

The delivery performance of suppliers to manufacturing organizations was slower in September as the Supplier Deliveries Index registered 50.3 percent, which is 1 percentage point higher than the 49.3 percent reported in August. This is the first month that supplier deliveries have been slower than the previous month since January 2012.

The Inventories Index registered 50.5 percent in September, which is 2.5 percentage points lower than the 53 percent reported in August. This month's reading indicates that respondents are reporting inventories are growing for the second consecutive month, but at a slower rate than in August.

ISM's Backlog of Orders Index registered 44 percent in September, which is 1.5 percentage points higher than the 42.5 percent reported in August. This is the sixth consecutive month of contraction in order backlogs. Of the 18 manufacturing industries, 11 are reporting growth in September in the following order: Textile Mills; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Wood Products; Apparel, Leather & Allied Products; Paper Products; Petroleum & Coal Products; Primary Metals; Fabricated Metal Products; Furniture & Related Products; and Miscellaneous Manufacturing. The six industries reporting contraction in September - listed in order - are: Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Machinery; Chemical Products; and Computer & Electronic Products.

Source: Institute for Supply Management