Economic activity in the US manufacturing sector expanded in August for the 32nd consecutive month, and the overall economy grew for the 75th consecutive month, according to the Institute for Supply Management’s latest Manufacturing ISM Report On Business issued Sept. 1.
The report is based on data compiled from purchasing and supply executives nationwide, including new orders, production, employment, supplier deliveries, inventories, prices, backlog of orders, exports and imports.
The August PMI (Purchasing Managers Index) registered 51.1 percent, a decrease of 1.6 percentage points from the July reading of 52.7 percent.
The New Orders Index registered 51.7 percent, a decrease of 4.8 percentage points from the reading of 56.5 percent in July.
The Production Index registered 53.6 percent, 2.4 percentage points below the July reading of 56 percent.
The Employment Index registered 51.2 percent, 1.5 percentage points below the July reading of 52.7 percent.
Inventories of raw materials registered 48.5 percent, a decrease of 1 percentage point from the July reading of 49.5 percent.
The Prices Index registered 39 percent, down 5 percentage points from the July reading of 44 percent, indicating lower raw materials prices for the 10th consecutive month.
The New Export Orders Index registered 46.5 percent, down 1.5 percentage points from the July reading of 48 percent.
“Comments from the panel [of supply executives] reflect a mix of modest to strong growth depending upon the specific industry, the positive impact of lower raw materials prices, but also a continuing concern over export growth,” said Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee.
Of the 18 manufacturing industries, 10 are reporting growth in August in the following order: Textile Mills; Furniture & Related Products; Paper Products; Nonmetallic Mineral Products; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Fabricated Metal Products; Plastics & Rubber Products; and Machinery.
The six industries reporting contraction in August — listed in order — are: Apparel, Leather & Allied Products; Primary Metals; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Computer & Electronic Products; and Transportation Equipment.