The rebound in manufacturing is in its second year and is accelerating, according to a leading index released Sept. 1 by the Institute of Supply Management. ISM’s composite PMI, which incorporates various elements of manufacturing such as production, orders and inventories, stood at 56.3% in August, meaning that the manufacturing sector was still growing and at a slightly more robust pace than in July. August represents the 13th straight month of expansion for the manufacturing sector, according to ISM
“Manufacturing activity continued at a very positive rate in August as the PMI rose slightly when compared to July,” says Norbert Ore, chairman of ISM’s Manufacturing Business Survey Committee. “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.” Production was up 2.9 percent while new orders were down 0.4 percent, but they remain well above the 50% threshold between expansion and contraction.
Eleven ndustries reported growth in August. In order of growth rate those were primary metals; apparel, leather & allied products; transportation equipment; fabricated metal products; electrical equipment, appliances & components; miscellaneous manufacturing; computer & electronic products; paper products; chemical products; food, beverage & tobacco products; and printing & related support activities.