More good news for manufacturing. A month ago, Institute for Supply Management data showed that manufacturing grew in August, for the first time since January 2008. ISM reported today that September gave an encore performance.
“While the rate of growth moderated slightly when compared to August, the recovery broadened as the number of industries reporting growth increased from 11 to 13,” says ISM’s Norbert J. Ore. “Both new orders and production are growing, but at a slower rate when compared to August.”
Those 13 growing sectors, listed in order: wood products; paper products; apparel, leather and allied products; transportation equipment; textile mills; printing and related support activities; petroleum and coal products; electrical equipment, appliances and components; fabricated metal products; chemical products; computer and electronic products; miscellaneous manufacturing; and food, beverage and tobacco products.
The four industries reporting contraction in September are: primary metals; furniture and related products; plastics and rubber products; and machinery.
ISM’s index was 52.6 for September, following a 52.9 in August. Any level over 50 indicates growth. The Associated Press reported that analysts polled by Thomson Reuters had expected a 54 for September.
— Max Heine