Economic activity in the manufacturing sector expanded in September for the 33rd consecutive month, and the overall economy grew for the 76th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

“In a clear sign of further weakening in the U.S. manufacturing sector, the Institute for Supply Management (ISM) index fell from 51.1 percent in August to 50.2 percent in September, its third consecutive decline,” noted Cliff Waldman, director of economic studies for the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation. “This is the lowest level for this widely followed index since May 2013; it comes quite close to the 50 percent mark separating growth from contraction.”

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee states, “The past relationship between the PMI and the overall economy indicates that the average PMI for January through September (52.2 percent) corresponds to a 2.9 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for September (50.2 percent) is annualized, it corresponds to a 2.2 percent increase in real GDP annually.”

A PMI in excess of 43.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the September PMI indicates growth for the 76th consecutive month in the overall economy, and indicates expansion in the manufacturing sector for the 33rd consecutive month.

By: DocMemory
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