ISM Manufacturing Index Returns To Expansion Mode

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Economic Update: ISM Manufacturing Index

The ISM (Institute of Supply Management) Manufacturing index shows that the manufacturing sector of the U.S. economy returned to expansion mode in September.

The all-important index, which is a proxy for the state of the manufacturing sector, was reported at 51.7 in September. The reading was well above the consensus estimate for a reading of 49.7 and above the August reading of 49.6 (July: 49.8, June: 49.7, May: 53.5, April 54.8).

The Employment Index was also a pleasant surprise as it came in at 54.7, which was above the expectations for 51.6.

The New Orders component was reported at 52.3, which was well above August’s reading of 47.1

The Prices Paid component, which is a measure of inflation, rose to 58.0 vs. expectations of 55 and well above last month’s reading of 54.

Stocks have spiked to the highs of the day in response to the report.

The index is designed to indicate the state of the manufacturing sector in the U.S. Readings above 50 are indicative of expansion while below 50 suggests contraction in the sector.

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Other stories on the US Economy to review:

• University of Michigan Consumer Sentiment Improves in September
  
• Chicago PMI Dives Below 50 in September
  
• Personal Income and Spending a Mixed Bag in August
  
• Pending Home Sales Point To a Potential Problem
  
• GDP Growth Rate Revised Down Significantly in Q2
  
• Durable Goods Orders Plunged in August
  
• New Home Sales Steady in August
  
• Richmond Fed Index Surprises to the Upside
  
• Consumer Confidence Surges Higher in September
  
• Case-Shiller Home Price Index Improves for 3rd Straight Month
  
• Philly Fed Index Improves in Sept, But Weakness Persists
  
• LEI Dips in August
  
• Exsiting Home Sales Improve in August
  
• Housing Starts Up in August, Permits Lower
  
• Homebuilder Confidence Up Again in Sept
  
• UofM Sentiment Surprises to Upside
  
• Industrial Production, Capacity Utilization Decline in August
  
• Retail Sales Improve In August
  
• CPI - Inflation In Line With Consensus
  
• PPI Hotter Than Expected in August
  
• Jobs Report Disappoints in August
  
• ADP Employment Surprises to the Upside Again in August
  
• Challenger Planned Job Cuts Hit 20-Month Low
  
• U.S. Productivity Improves, Labor Costs Steady
  
• Big Miss: Construction Spending Dives

 

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