Purchasing Managers Index Flat in August

Tempe, AZ, September 1, 2022-The August Manufacturing Purchasing Managers Index (PMI) registered 52.8%, the same reading as recorded in July, according to the Manufacturing ISM Report On Business. This figure indicates expansion in the overall economy for the 27th month in a row after contraction in April and May 2020. 

For a second straight month, the Manufacturing PMI figure is the lowest since June 2020, when it registered 52.4%. 

The New Orders Index registered 51.3%, 3.3 percentage points higher than the 48% recorded in July. 

The Production Index reading of 50.4% is a 3.1-percentage point decrease compared to July’s figure of 53.5%. 

The Prices Index registered 52.5%, down 7.5 percentage points compared to the July figure of 60%; this is the index’s lowest reading since June 2020 (51.3%). 

The Backlog of Orders Index registered 53%, 1.7 percentage points above the July reading of 51.3%. 

After three straight months of contraction, the Employment Index expanded at 54.2%, 4.3 percentage points higher than the 49.9% recorded in July. 

The Supplier Deliveries Index reading of 55.1% is 0.1 percentage point lower than the July figure of 55.2%. 

The Inventories Index registered 53.1%, 4.2 percentage points lower than the July reading of 57.3%. 

The New Export Orders Index contracted at 49.4%, down 3.2 percentage points compared to July’s figure of 52.6%. 

The Imports Index remained in expansion territory at 52.5%, but 1.9 percentage points below the July reading of 54.4%.

Of the six biggest manufacturing industries, five-petroleum & coal products; transportation equipment; computer & electronic products; machinery; and food, beverage & tobacco products-registered moderate-to-strong growth in August.

Ten manufacturing industries reported growth in August, in the following order: nonmetallic mineral products; petroleum & coal products; transportation equipment; computer & electronic products; printing & related support activities; plastics & rubber products; primary metals; machinery; miscellaneous manufacturing; and food, beverage & tobacco products. The seven industries reporting contraction in August compared to July, in the following order are wood products; apparel, leather & allied products; furniture & related products; paper products; chemical products; fabricated metal products; and electrical equipment, appliances & components.