The Economy

Growth Slows In September

Oct. 2, 2006

Although the manufacturing sector of the U.S. economy grew for the fortieth consecutive month in September, the pace was slower, reveal data released Oct. 2 by the Institute for Supply Management (ISM). Its index of manufacturing activity fell 1.6 percentage points to 52.9% in September from 54.5% in August. A figure above 50% indicates the manufacturing sector is growing; a figure below 50% signals it is contracting.

New manufacturing orders continued to grow in September, but the pace was unchanged from August at 54.2%. Production also grew in September, but the pace was half a point slower at 56.1%. Manufacturing employment contracted in September, with that index falling to 49.4% in September from 54% in August. And inventories contracted as well, with that index falling 3.8 percentage points to 46.4% in September from 50.2% in August.

"It's apparent that manufacturing is losing momentum and feeling the effects of higher interest rates and a weaker housing market," says Norbert J. Ore, chairman of ISM's manufacturing business survey committee.

"After scrambling to add inventories earlier this year amid supply disruptions, inventories are now being pared back -- particularly in the motor vehicle sector," says Daniel J. Meckstroth, chief economist at Manufacturers Alliance/MAPI, an Arlington, Va.-based business and public policy research group. "Housing construction activity is declining, and the growth in equipment demand is probably slowing from an unsustainably fast pace," he adds.

About the Author

John McClenahen | Former Senior Editor, IndustryWeek

John S. McClenahen, is an occasional essayist on the Web site of IndustryWeek, the executive management publication from which he retired in 2006. He began his journalism career as a broadcast journalist at Westinghouse Broadcasting’s KYW in Cleveland, Ohio. In May 1967, he joined Penton Media Inc. in Cleveland and in September 1967 was transferred to Washington, DC, the base from which for nearly 40 years he wrote primarily about national and international economics and politics, and corporate social responsibility.

      McClenahen, a native of Ohio now residing in Maryland, is an award-winning writer and photographer. He is the author of three books of poetry, most recently An Unexpected Poet (2013), and several books of photographs, including Black, White, and Shades of Grey (2014). He also is the author of a children’s book, Henry at His Beach (2014).

      His photograph “Provincetown: Fog Rising 2004” was selected for the Smithsonian Institution’s 2011 juried exhibition Artists at Work and displayed in the S. Dillon Ripley Center at the Smithsonian Institution in Washington, D.C., from June until October 2011. Five of his photographs are in the collection of St. Lawrence University and displayed on campus in Canton, New York.

      John McClenahen’s essay “Incorporating America: Whitman in Context” was designated one of the five best works published in The Journal of Graduate Liberal Studies during the twelve-year editorship of R. Barry Leavis of Rollins College. John McClenahen’s several journalism prizes include the coveted Jesse H. Neal Award. He also is the author of the commemorative poem “Upon 50 Years,” celebrating the fiftieth anniversary of the founding of Wolfson College Cambridge, and appearing in “The Wolfson Review.”

      John McClenahen received a B.A. (English with a minor in government) from St. Lawrence University, an M.A., (English) from Western Reserve University, and a Master of Arts in Liberal Studies from Georgetown University, where he also pursued doctoral studies. At St. Lawrence University, he was elected to academic honor societies in English and government and to Omicron Delta Kappa, the University’s highest undergraduate honor. John McClenahen was a participant in the 32nd Annual Wharton Seminars for Journalists at the Wharton School at the University of Pennsylvania in Philadelphia. During the Easter Term of the 1986 academic year, John McClenahen was the first American to hold a prestigious Press Fellowship at Wolfson College, Cambridge, in the United Kingdom.

      John McClenahen has served on the Editorial Board of Confluence: The Journal of Graduate Liberal Studies and was co-founder and first editor of Liberal Studies at Georgetown. He has been a volunteer researcher on the William Steinway Diary Project at the Smithsonian Institution, Washington, D.C., and has been an assistant professorial lecturer at The George Washington University in Washington, D.C.