PMI indicates rise in manufacturing sector

03 Oct '06

2 min read

Economic activity in the manufacturing sector grew in September for the 40th consecutive month, while the overall economy grew for the 59th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report on Business.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector continues on a trend of slowing growth in September. While there was little change in new orders and production when compared to August, significant slowing took place in employment and inventories. It's apparent that manufacturing is losing momentum and feeling the effects of higher interest rates and a weaker housing market."

TOP PERFORMING INDUSTRIES
The 12 industries reporting growth in September — listed in order — are: Petroleum & Coal Products; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Computer & Electronic Products; Primary Metals; Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Chemical Products; Transportation Equipment; Food, Beverage & Tobacco Products; and Plastics & Rubber Products.

PMI
The PMI indicates that the manufacturing economy grew in September for the 40th consecutive month as it registered 52.9 percent, a decrease of 1.6 percentage points when compared to August's reading of 54.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

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