Economic activity in the manufacturing sector expanded in September following one month of contraction in August, and the overall economy grew for the 88th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The September PMI registered 51.5 percent, an increase of 2.1 percentage points from the August reading of 49.4 percent.
The New Orders Index registered 55.1 percent, an increase of 6 percentage points from the August reading of 49.1 percent.
The Production Index registered 52.8 percent, 3.2 percentage points higher than the August reading of 49.6 percent.
The Employment Index registered 49.7 percent, an increase of 1.4 percentage points from the August reading of 48.3 percent.
Inventories of raw materials registered 49.5 percent, an increase of 0.5 percentage point from the August reading of 49 percent.
The Prices Index registered 53 percent in September, the same reading as in August, indicating higher raw materials prices for the seventh consecutive month.
Manufacturing expanded in September following one month of contraction in August, with nine of the 18 industries reporting an increase in new orders in September (up from six in August), and 10 of the 18 industries reporting an increase in production in September (up from eight in August).
Of the 18 manufacturing industries, seven are reporting growth in September in the following order: Nonmetallic Mineral Products; Furniture and Related Products; Textile Mills; Food, Beverage and Tobacco Products; Computer and Electronic Products; Miscellaneous Manufacturing; and Paper Products.
The 11 industries reporting contraction in September, listed in order, are: Printing and Related Support Activities; Petroleum and Coal Products; Wood Products; Apparel, Leather and Allied Products; Transportation Equipment; Machinery; Plastics and Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; and Electrical Equipment, Appliances and Components.