Manufacturing Sector Growth Strongest in 14 Years

The ISM Manufacturing Index registered 61.3 points in August, up 3.2 percentage points from the previous month, according to the Institute for Supply Management. August’s reading indicates the twenty-fourth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, sixteen reported growth, while two reported contraction. Nine of the ten index components grew, while the customers’ inventories index contracted.

The Employment Index increased 2.0 points to 58.5 in August, indicating expansion for the twenty-third consecutive month. Ten industries reported expansion, while four reported a decrease in employment.

The New Orders Index increased 4.9 points to 65.1 in August, indicating growth for the thirty-second consecutive month. Thirteen industries reported expansion, while one reported a decrease in employment.

Export orders decreased 0.1 point to 55.2, indicating growth for the thirtieth consecutive month. Six industries reported growth while four reported a decrease in new export orders.

The Inventories Index registered 55.4 points, up 2.1 points from the previous month. Fourteen industries reported higher inventories, while one reported a decrease.

Read the ISM release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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