Sept. 2, 2015
August PMI Shows Slowing Growth
Economic activity in the manufacturing sector expanded in August for the 32nd consecutive month, reports the Institute for Supply Management in its latest Manufacturing ISM Report on Business. The August PMI registered 51.1 percent, a decrease of 1.6 percentage points from the July reading. Any reading above 50.0 percent is considered an expansion of the manufacturing economy.
Of the 18 manufacturing industries, 10 reported growth in August, including fabricated metal products, machinery, and miscellaneous manufacturing. Six industries reported contraction, including primary metals and appliances and components.
Other indices were positive, but also demonstrated slowing growth. The New Order index
registered 51.7 percent, a decrease of 4.8 percentage points, the
Production Index fell 2.4 percentage points to 53.6 percent, and the
Employment Index was at 51.2 percent, down 1.5 percentage points from
The August PMI corresponds to a 2.5 percent increase in real GDP annually, says Bradley J. Holcomb, chairman of the Manufacturing Business Survey Committee for Tempe, Ariz.-based ISM. Additionally, the average PMI of 52.4 percent for the year to date corresponds to a 2.9 percent increase in GDP.