Manufacturing PMI (CONT’D FROM PAGE 20)
addressed by the time of this report — and election uncer- tainty. “Production execution stabilized in September. Suppli- ers continue to have capacity, with lead times improving and shortages reappearing. Seventy-seven percent of manufacturing gross domestic product (GDP) contracted in September, up from 65 percent in August. “The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 41 per- cent in September, an 8-percentage point increase com- pared to the 33 percent reported in August. Only one of the six largest manufacturing industries — Food, Beverage & Tobacco Products — expanded in September, compared to two in August,” says Fiore. The five manufacturing industries reporting growth in September are: Petroleum & Coal Products; Food, Bever- age & Tobacco Products; Textile Mills; Furniture & Related Products; and Miscellaneous Manufacturing. The 13 industries reporting contraction in September — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Wood Products; Ap- parel, Leather & Allied Products; Primary Metals; Transpor- tation Equipment; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Chemical Products; Fabricated Metal Products; and Computer & Electronic Products. For more information, visit ismrob.org .
than the 49.6 percent reported in August.” Fiore continues, “U.S. manufacturing activity contract- ed again in September, and at the same rate compared to last month. Demand continues to be weak, output de- clined, and inputs stayed accommodative. “Demand slowing was reflected by the (1) New Orders Index remaining in contraction territory, (2) New Export Orders Index contracting at a faster rate, (3) Backlog of Orders Index staying in strong contraction territory, and (4) Customers’ Inventories Index indicating customers’ inven- tories were “about right.” “Output (measured by the Production and Employ- ment indexes) continued in contraction with mixed results: Employment shrunk at a faster rate while production ap- proached expansion, with levels on par compared to Au- gust. “Panelists cited continuing efforts by their companies to right-size workforces to levels consistent with projected demand. Inputs — defined as supplier deliveries, invento- ries, prices and imports — generally continued to accom- modate future demand growth, with inventories returning to low levels and suppliers showing some difficulty in meeting customer needs. “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
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