Sept. 3, 2014
PMI Hits Highest Mark Since 2011
Economic activity in the manufacturing sector expanded in August for the 15th consecutive month as the PMI reached 59.0 percent, reports the Institute for Supply Management, Tempe, Ariz. The reading is 1.9 percentage points above the July reading, and the highest mark since March 2011. Any reading above 50 represents growth.
Of the 18 manufacturing industries polled, 17 reported growth in August, including fabricated metal products, primary metals, miscellaneous manufacturing and machinery.
The PMI's average of 55 percent from January through August corresponds to a 3.9 percent increase in real gross domestic product. In addition, if the PMI for August is annualized, it corresponds to a 5.2 percent increase in real GDP annually, says Dean Holcomb, chairman of ISM's Manufacturing Business Survey Committee.
Additionally, ISM's New Orders Index registered 66.7 percent, an increase of 3.3 percentage points. The Production Index was at 64.5 percent, 3.3 percentage points above July's reading. The Employment Index grew for the 14th consecutive month to 58.1 percent.