ISM’s monthly report on the American manufacturing sector is out.
The headline index from the report unexpectedly rose to 56.2 from August’s 55.7 reading. Economists predicted the index would fall to 55.0.
Any number above 50 indicates expansion while a sub-50 reading indicates contraction, so today’s report suggests that the pace of expansion in American manufacturing accelerated last month.
The production sub-index advanced to 62.6 from 62.4, but the new orders sub-index fell to 60.5 from 63.2. The employment sub-index jumped to 55.4 from 53.3.
At right is a full breakdown of the internals of the report.
Below is what some of the respondents to the ISM survey are saying:
- “Global sales generally trending moderately higher.” (Textile Mills)
- “Slight increase in demand. Forecast looks better. 4Q looking better than 3Q — should begin to see demand increase in October/November.” (Food, Beverage & Tobacco Products)
- “Raw materials shortages continue. General trends are up, which enhances shortage issues.” (Wood Products)
- “Overall business is flat to down across the board.” (Machinery)
- “Housing continues to improve, resulting in improved conditions for our industry.” (Furniture & Related Products)
- “Rising costs of China labour has us re-evaluating our current position in that country.” (Computer & Electronic Products)
- “Steady increase in work this month.” (Primary Metals)
- “Overall business is picking up.” (Transportation Equipment)
- “Outlook remains strong with housing market and customer orders.” (Electrical Equipment, Appliances & Components)
- “Labour rates along the Gulf Coast are rising with the increased activity of construction and maintenance projects.” (Chemical Products)