Economic activity in the manufacturing sector expanded in August for the 32nd consecutive month, and the overall economy grew for the 75th consecutive month, according to the nation's supply executives in the latest "Manufacturing ISM Report On Business" released Sept. 1.
"The August PMI registered 51.1 percent, a decrease of 1.6 percentage points from the July reading of 52.7 percent," according to a news release issued by the Institute for Supply Management (ISM). "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 a decrease of 1 percentage point from the July reading of 49.5 percent, while the Prices Index was down 5 percentage points from the July reading of 44 percent, indicating lower raw materials prices for the 10th consecutive month.
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.
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