U.S. manufacturing index remains positive for September

The recovery in manufacturing continues as the Purchasing Managers Index (PMI) registered 52.6 percent in September, which is 0.3 percentage point lower than the 52.9 percent reported in August, and the second month of expansion following 18 months of decline.

U.S. economic activity in the manufacturing sector expanded in September for the second consecutive month, and the overall economy grew for the fifth consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business, issued by the Institute for Supply Management (Tempe, Ariz., USA) on Oct 1.

The recovery in manufacturing continues as the Purchasing Managers Index (PMI) registered 52.6 percent in September, which is 0.3 percentage point lower than the 52.9 percent reported in August, and the second month of expansion following 18 months of decline. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew for the second consecutive month in September. While the rate of growth moderated slightly when compared to August, the recovery broadened as the number of industries reporting growth increased from 11 to 13. Both new orders and production are growing, but at a slower rate when compared to August. It appears the fundamentals for continuing recovery are still at work as inventories and sales are gaining balance. This month, we asked a special question with regard to the American Recovery and Reinvestment Act. Twelve of the 18 manufacturing industries expect to derive some benefit from the program, and 12 manufacturing industries responded that they expect their companies to see some benefit.”