Manufacturing Index Grew to Six-Year High in August

The ISM Manufacturing Index registered 58.8 points in August, up 2.5 percentage points from the previous month, according to the Institute for Supply Management. August’s reading indicates a twelfth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. It was the highest reading since April 2011. Of the eighteen manufacturing industries, fourteen reported growth, while three reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted for the second consecutive month.

The Employment Index decreased 4.7 points to 59.9 in August, indicating expansion for the eleventh consecutive month. Thirteen industries reported expansion, while two reported a decrease in employment.
The New Orders Index decreased 0.1 point to 60.3 in August, indicating growth for the twelfth consecutive month. Twelve industries reported expansion, while four reported a decrease in employment.

Export orders decreased 2.0 points to 55.5, indicating growth for the eighteenth consecutive month. Eight industries reported growth while only two of the eighteen reported a decrease in new export orders.

The inventories index registered 55.5 points, up 5.5 points from the previous month. Eleven industries reported higher inventories, while five reported a decrease.

Read the ISM release.

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About Stephen Newton

Stephen Newton is an economic research associate at ABA.