Manufacturing Index Surged to Thirteen-Year High in September

The ISM Manufacturing Index registered 60.8 points in September, up 2.0 percentage points from the previous month, according to the Institute for Supply Management. September’s reading indicates the thirteenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. It was the highest reading since May 2004. Of the eighteen manufacturing industries, seventeen reported growth, while one, Furniture & Related Products, reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted for the third consecutive month.

The Employment Index increased 0.4 point to 60.3 in September, indicating expansion for the twelfth consecutive month. Thirteen industries reported expansion, while three reported a decrease in employment.

The New Orders Index increased 4.3 points to 64.6 in September, indicating growth for the thirteenth consecutive month. Fourteen industries reported expansion, while three reported a decrease in employment.

Export orders increased 1.5 points to 57.0, indicating growth for the nineteenth consecutive month. Nine industries reported growth while only two of the eighteen reported a decrease in new export orders.

The inventories index registered 52.5 points, down 3.0 points from the previous month. Nine industries reported higher inventories, while six reported a decrease.

Read the ISM release.

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About Stephen Newton

Stephen Newton is an economic research associate at ABA.