Growth in Manufacturing Sector Slows

Tempe, AZ, October 1, 2007--Economic activity in the manufacturing sector expanded in September for the eighth consecutive month, while the overall economy grew for the 71st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

However, the association’s manufacturing index fell to 52% in September from 52.9% in August.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Manufacturing growth continued in September while some sectors of the economy are apparently struggling. The trend is toward slower growth in manufacturing as the rate of growth in both the New Orders Index and Production Index slowed.

The report said the sector is apparently in excellent shape with regard to inventories as the Inventories Index fell to 41.6%, indicating significant inventory liquidation, and the rate of growth in the Employment Index increased slightly in September. Overall, the report said, September looks like a good month for manufacturing.

The 11 industries reporting growth in September — listed in order — are: Petroleum and Coal Products; Apparel, Leather and Allied Products; Electrical Equipment, Appliances and Components; Food, Beverage & Tobacco Products; Paper Products; Nonmetallic Mineral Products; Chemical Products; Plastics and Rubber Products; Miscellaneous Manufacturing; Computer and Electronic Products; and Transportation Equipment.