The manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the past 22 months, according to the Manufacturing ISM report on Business. The report was issued by the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.
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The Manufacturing Purchasing Managers Index (PMI) was 47.2% in August, up 0.4 percentage point from July’s index of 46.8%.
Here’s the breakdown of the August PMI:
- The New Orders Index remained in contraction territory, registering 44.6%, 2.8 percentage points lower than the 47.4% recorded in July.
- The Production Index (44.8%) is 1.1 percentage points lower than July’s figure of 45.9%.
- The Prices Index registered 54%, up 1.1 percentage points compared to the reading of 52.9% in July.
- The Backlog of Orders Index registered 43.6%, up 1.9 percentage points compared to 41.7% in July.
- The Employment Index registered 46%, up 2.6 percentage points from July’s figure of 43.4%.
- The Supplier Deliveries Index indicated slowing deliveries, registering 50.5%, 2.1 percentage points lower than July’s 52.6%.
- The Inventories Index registered 50.3%, up 5.8 percentage points compared to July’s reading of 44.5%.
- The New Export Orders Index reading of 48.6% is 0.4 percentage point lower than July’s 49%.
- The Imports Index remained in contraction territory in August, registering 49.6%, 1 percentage point higher than July’s 48.6%.
The five manufacturing industries reporting growth in August were: Primary Metals; Petroleum & Coal Products; Furniture & Related Products; Food, Beverage & Tobacco Products; and Computer & Electronic Products.
