Posted September 1, 2010
ISM: Manufacturing expanded in August
Economic activity in the manufacturing sector expanded in August for the 13th consecutive month according to the Institute for Supply Management.
The PMI registered 56.3 percent, an increase of 0.8 percentage point when compared to July's reading of 55.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
ISM's New Orders Index registered 53.1 percent in August, which is a decrease of 0.4 percentage point when compared to the 53.5 percent reported in July. This is the 14th consecutive month of growth in the New Orders Index.
The eight industries reporting growth in new orders in August — listed in order — are: Primary Metals; Apparel, Leather & Allied Products; Paper Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Transportation Equipment; and Chemical Products.
ISM's Production Index registered 59.9 percent in August, which is an increase of 2.9 percentage points from the July reading of 57 percent.
"Manufacturing activity continued at a very positive rate in August as the PMI rose slightly when compared to July. In terms of month-over-month improvement, the Production and Employment Indexes experienced the greatest gains, while new orders continued to grow but at a slightly slower rate," said Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.
