For the eight consecutive month, economic activity in the manufacturing sector expanded in September according to the Institute for Supply Management's report. The overall economy grew for the 71st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
"Manufacturing growth continued in September while some sectors of the economy are apparently struggling. The trend is toward slower growth in manufacturing as the rate of growth in both the New Orders Index and Production Index slowed. The sector is apparently in excellent shape with regard to inventories as the Inventories Index fell to 41.6%, indicating significant inventory liquidation, and the rate of growth in the Employment Index increased slightly in September. Overall, September looks like a good month for manufacturing," said Norbert J. Ore, C.P.M., chair of the Manufacturing Business Survey Committee.
Manufacturing grew at a slower rate in September as the PMI registered 52%, a decrease of 0.9 percentage point when compared to August's reading of 52.9%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting
The September report is consistent with recent data releases indicating moderate and mixed growth in manufacturing, said Thomas J. Duesterberg, CEO of the Manufacturers Alliance/MAPI. "Exports of price-sensitive goods, such as chemicals and electrical equipment, are helping lead growth, while housing and autos continue to be a drag on growth. Lower inventories, moderating input costs, and slightly stronger hiring patterns all point to modest growth for the remainder of the year."
The 11 industries reporting growth in September -- listed in order -- are: Petroleum & Coal Products; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Paper Products; Nonmetallic Mineral Products; Chemical Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Computer & Electronic Products; and Transportation Equipment.