Overall economy, manufacturing industry slowly grows in September

The manufacturing industry grew for the 26th consecutive month and the overall economy grew for the 28th consecutive month in September, according to the Manufacturing Institute for Supply Management’s Report on Business.

In September, the petroleum and coal products industry reported the second-highest growth out of 12 industries.

The PMI registered 51.6 percent, a slight increase from August. A reading above 50 percent indicates that the manufacturing economy is expanding while a reading above 42.5 percent over a period of time indicates the overall economy is expanding.

The New Orders Index registered 49.6 percent in September, the same as August, which indicates the third consecutive month of contraction following 24 months of growth.

The Production Index read 51.2 percent, an increase of 2.6 percentage points from August and the first month it indicates growth after one month of contraction.

The Employment Index read 53.8 percent in September, 2 percentage points higher than in August. Petroleum and Coal Products reported the second-highest growth in employment out of 18 industries.

Deliveries from suppliers to manufacturers slowed in September as the index registered 51.4 percent, less than 1 percentage point higher than August and the 28th consecutive month of slower deliveries. The petroleum and coal products industry reported the slowest deliveries out of seven industries for September.

The Inventories Index read 52 percent, slightly lower than August. Petroleum and coal products indicated the sixth-highest inventory out of eight industries for the month of September.

Manufacturing industries believe their customers’ inventories are too low for the 30th consecutive month as the index reads 49 percent in September, an increase of 2.5 percentage points.

The Prices Index read 56 percent for September, slightly higher than August. It is the fifth consecutive month the index registered below 80 percent and the 27th consecutive month it has registered above 50 percent. Most of the respondents, 60 percent, reported paying the same prices as in August, including executives from the petroleum and coal industry.

The Backlog of Orders Index registered 41.5 percent in September, more than 4 percentage points lower than August. The petroleum and coal products industry reported no change in backlog orders from August.

The New Export Orders Index registered 53.5 percent in September, 3 percentage points higher than August and the 27th consecutive month of increased exports reported in the index.

Manufacturing executives reported more imports for September with the Imports Index registering at 54.5 percent, slightly lower than reported in August and the 25th consecutive month of increased imports.

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