PMI Ticks Up to 59.9 Percent
By Metal Center News Staff
on Sep 8, 2021
Economic activity in the manufacturing sector grew in August, the 15th consecutive month of expansion, the Institute for Supply Management reported in its latest Report on Business. The PMI for August was 59.9 percent, an increase of 0.4 percentage points from the July reading.
The six largest manufacturing industries, which includes fabricated metals, all registered moderate to strong growth in August.
Other indices also showed accelerating growth, with the New Orders Index increasing 1.8 percentage points to 66.7 percent, the Production Index climbing to 60 percent, a 1.6 percentage-point-increase, and the Backlog of Orders Index was up 3.2 percentage points to 68.2 percent. However, the employment picture continued to lag, falling 3.9 percentage points to 49 percent, a number indicating contraction.
“Business Survey Committee panelists reported that their companies and suppliers continue to struggle at unprecedented levels to meet increasing demand. All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products,” said Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee.