Manufacturing PMI^® at 54.6%

Economic activity in the manufacturing sector expanded in August for the eighth consecutive month, say the nation’s supply executives in the latest ISM^® Manufacturing PMI^® Report.

The Manufacturing PMI^® registered 54.6 percent. The overall economy continued in expansion for the 22nd month in a row. (A Manufacturing PMI® above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the eighth consecutive month after four straight readings in contraction, registering 53.7 percent, down 3 percentage points compared to July’s figure of 56.7 percent. The August reading of the Production Index (58.3 percent) is 0.2 percentage point lower than the 58.5 percent recorded in July. The Prices Index remained in expansion (or “increasing” territory), registering 71.1 percent, the same reading as July. The Backlog of Orders Index registered 51.8 percent, down 3.2 percentage points compared to the 55 percent recorded in July. The Employment Index reading of 51.2 percent is down 1.6 percentage points from July’s figure of 52.8 percent. 

The 15 manufacturing industries reporting growth in August — listed in order — are: Primary Metals; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing^‡; Textile Mills; Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Transportation Equipment; Fabricated Metal Products; Petroleum & Coal Products; Printing & Related Support Activities; Computer & Electronic Products; Plastics & Rubber Products; Machinery; and Food, Beverage & Tobacco Products.

The U.S. manufacturing sector expanded in August for the eighth straight month following a 10-month period of contraction, registering 54.6 percent, a decrease of 1 percentage point compared to July. Of the five subindexes that directly factor into the Manufacturing PMI^® — the New Orders, Production, Employment, Supplier Deliveries and Inventories indexes — all were in expansion territory, the same as in July. 

Commodities Reported

Commodities Up in Price: Aluminum* (33); Chemicals; Copper (14); Copper Products; Corrugated Products (5); Diesel Fuel; Electrical Components (3); Electronic Components (8); Freight (6); Fuel (6); Memory Components (6); Metal Products (5); Oil Based Products (5); Plastic Based Products (5); Printed Circuit Boards (2); Resin Based Products (2); Resins (7); Semiconductors (3); Steel (10); Steel — Cold Rolled (2); Steel — Hot Rolled (8); Steel — Stainless (7); Steel Products (9); and Wire.

Commodities Down in Price: Aluminum*(3); and Solvents.

Commodities in Short Supply: Copper (2); Electrical Components (14); Electronic Components (18); Labor; Memory (8); Printed Circuit Boards (2); Steel (2); and Tungsten Products (2).

Note: To view the full report, visit the ISM^® PMI^® Reports website at ismrob.org.

The number of consecutive months the commodity is listed is indicated after each item. *Indicates both up and down in price.