September 2017 Manufacturing ISM Report on Business; PMI at 60.8%

September 2017 Manufacturing ISM Report on Business; PMI at 60.8%

September 2017 Manufacturing ISM Report on Business; PMI at 60.8%

Manufacturing had "strong growth in spite of weather impacts", said Timothy R. Fiore, chair of the institute's Manufacturing Business Survey Committee.

Measure of new orders increased to 64.6, the strongest since February, from 60.3. In that way, the results were quite consistent with the latest results for the NAM Manufacturers' Outlook Survey, which found that almost 90 percent of respondents were positive about their own company's business outlook. Nine of the ten index components grew, while the customers' inventories index contracted for the third consecutive month. With supplies outpacing demand, the glut of oil is expected to linger in 2018. What's more, the ISM's order backlogs index crept up to the highest level since April 2011, helping explain why more factories are stepping up hiring. An Employment Index above 50.5%, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

The Inventories Index registered 52.5 percent, a decrease of 3 percentage points from the August reading of 55.5 percent.

Another hurricane, Irma, also struck Florida and the southeastern USA last month.

ISM said that Harvey and Irma had caused supplies and pricing issues in the chemical products division, whereas makers of nonmetallic mineral goods stated that while the storms were improving sales, they were also boosting prices on raw materials. Some ISM respondents indicated new orders because of hurricanes, which destroyed merchandise in the Houston area. Only one industry, furniture and related products, reported contraction in September compared to August. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually.

Related news