Manufacturing Sector Contracts Further in September

The ISM Manufacturing Index registered 47.8 points in September, down 1.3 percentage points from the previous month, according to the Institute for Supply Management. Readings under 50 points denote contraction. Of the eighteen manufacturing industries, three reported growth in September, in the following order: Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Chemical Products. The fifteen industries reporting contraction in September — in the following order — are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Wood Products; Electrical Equipment, Appliances & Components; Textile Mills; Paper Products; Fabricated Metal Products; Plastics & Rubber Products; Petroleum & Coal Products; Primary Metals; Transportation Equipment; Nonmetallic Mineral Products; Machinery; Furniture & Related Products; and Computer & Electronic Products.

The Employment Index registered 46.3 percent, a decrease of 1.1 percentage points from the August reading of 47.4 percent. This indicates contraction in September for the second month in a row. Of eighteen manufacturing industries, four reported employment growth in September. Eleven industries reported a decrease in employment.

The New Orders Index registered 47.3 percent in September, an increase of 0.1 percentage point from the August reading of 47.2 percent. This indicates that new orders contracted for the second consecutive month. Three industries reported expansion, while eleven reported a decrease in new orders.

The New Export Orders Index registered 41.0 percent in September, a decrease of 2.3 percentage points from the August reading of 43.3 percent, indicating that new export orders contracted for the third month in a row. This was the lowest reading since March 2009.

The Inventories Index registered 46.9 percent in September, a decrease of 3.0 percentage points from the August reading of 49.9 percent. This indicates that inventories contracted for the fourth consecutive month.

Read the ISM release.