The Purchasing Managers Index (PMI) registered 52.6 in September, which is 0.3 points lower than the 52.9 reported in August but reflects the second consecutive month of growth after continuous monthly declines started in June 2007, according to the Institute for Supply Management (ISM). A PMI of 50 and above indicates general growth, whereas a PMI below 50 indicates contraction.
The latest Manufacturing ISM Report On Business also revealed growth in the overall economy for the fifth consecutive month.
“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,” says Norbert J. Ore, CPSM, C.P.M., chair of the ISM manufacturing business survey committee.
"It appears the fundamentals for continuing recovery are still at work, as inventories and sales are gaining balance,” Ore adds. “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."
In September, 13 of 18 manufacturing industries reported growth. Those industries include wood products; paper products; apparel, leather and allied products; transportation equipment; textile mills; printing and related support activities; petroleum and coal products; electrical equipment, appliances and components; fabricated metal products; chemical products; computer and electronic products; miscellaneous manufacturing; and food, beverage and tobacco products. The four industries reporting contraction include primary metals; furniture and related products; plastics and rubber products; and machinery.
View the complete September 2009 Manufacturing ISM Report On Business.