Association News

Economic activity in the manufacturing sector contracted in September for the sixth consecutive month and the 22nd time in the last 23 months, the nation’s supply executives said in the latest Manufacturing ISM Report On Business from the Institute for Supply Management. The PMI for September was 47.2 percent, identical to the August figure. 

The New Orders Index remained in contraction territory, registering 46.1 percent, 1.5 percentage points higher than August. The September reading of the Production Index was 5 percentage points higher than August’s figure of 44.8 percent. The Prices Index went into contraction territory for the first time this year, registering 48.3 percent, down 5.7 percentage points compared to the reading of 54 percent in August.

“Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy, which the U.S. Federal Reserve addressed by the time of this report, and election uncertainty. Production execution stabilized in September,” said Timothy R. Fiore, chair of the ISM’s Manufacturing Business Survey Committee.

In September, fabricated metal products was one of 13 industries reporting contraction, a group which included primary metals, appliances & components, transportation equipment and machinery.