ISM: Manufacturing activity expanded in August

Economic activity in the manufacturing sector expanded in August, and the overall economy grew for the 99th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued on September 1st by Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. The report noted:

• Manufacturing expanded in August as the PMI registered 58.8 percent, an increase of 2.5 percentage points from the July reading of 56.3 percent. This indicates growth in manufacturing for the 12th consecutive month and is the highest reading since April 2011, when the index registered 59.1 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
• The New Orders Index registered 60.3 percent in August, which is a decrease of 0.1 percentage point when compared to the 60.4 percent reported for July, indicating growth in new orders for the 12th consecutive month. "Order input continues at a strong pace consistent with the last four months of order activity," stated Fiore.
• The Production Index registered 61 percent in August, which is an increase of 0.4 percentage point when compared to the 60.6 percent reported for July, indicating growth in production for the 12th consecutive month. "Production remains at strong growth levels in most industries in spite of supplier delivery constraints," stated Fiore.
• The Employment Index registered 59.9 percent in August, an increase of 4.7 percentage points when compared to the July reading of 55.2 percent. This indicates growth in employment in August for the 11th consecutive month. Employment levels have been expanding since October 2016 and reached the highest level of expansion since June 2011, when the index registered 61.3 percent.

The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide.

Source and more information: Institute for Supply Management.