The manufacturing sector contracted in September for the 11th consecutive month, according to the nation’s supply executives in the latest Manufacturing ISM® Report on Business.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:
“The overall economy expanded weakly after nine months of contraction following a 30-month period of expansion. The New Orders Index remained in contraction territory at 49.2%, 2.4 percentage points higher than the figure of 46.8% recorded in August.
“The Production Index reading of 52.5% is a 2.5-percentage point increase compared to August’s figure of 50%. The Prices Index registered 43.8%, down 4.6 percentage points compared to the reading of 48.4% in August.
“The Backlog of Orders Index registered 42.4%, 1.7 percentage points lower than the August reading of 44.1%. The Employment Index registered 51.2%, up 2.7 percentage points from the 48.5% reported in August.
“The Supplier Deliveries Index figure of 46.4% is 2.2 percentage points lower than the 48.6% recorded in August. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
“The Inventories Index increased by 1.8 percentage points to 45.8%; the August reading was 44%. The New Export Orders Index reading of 47.4% is 0.9 percentage point higher than August’s figure of 46.5%. The Imports Index remained in contraction territory, registering 48.2%, 0.2 percentage point higher than the 48% reported in August.”
The five manufacturing industries that reported growth in September are: Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Textile Mills; Primary Metals; and Petroleum & Coal Products. The 11 industries reporting contraction in September — in the following order — are: Printing & Related Support Activities; Furniture & Related Products; Plastics & Rubber Products; Paper Products; Fabricated Metal Products; Wood Products; Computer & Electronic Products; Machinery; Electrical Equipment, Appliances & Components; Chemical Products; and Transportation Equipment.