Purchasing Managers' Index Held Steady in September

Tempe, AZ, October 1, 2024-The Manufacturing Purchasing Managers’ Index (PMI) registered 47.2% in September, matching the figure recorded in August, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The overall economy continued in expansion for the 53rd month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index remained in contraction territory, registering 46.1%, 1.5 percentage points higher than the 44.6% recorded in August. 

The September reading of the Production Index (49.8%) is five percentage points higher than August’s figure of 44.8%. 

The Prices Index went into contraction (or ‘decreasing’) territory for the first time this year, registering 48.3%, down 5.7 percentage points compared to the reading of 54% in August. 

The Backlog of Orders Index registered 44.1%, up 0.5 percentage point compared to the 43.6% recorded in August. 

The Employment Index registered 43.9%, down 2.1 percentage points from August’s figure of 46%.

The Supplier Deliveries Index indicated slowing deliveries, registering 52.2%, 1.7 percentage points higher than the 50.5% recorded in August. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 43.9%, down 6.4 percentage points compared to August’s reading of 50.3%.

The New Export Orders Index reading of 45.3% is 3.3 percentage points lower than the 48.6% registered in August. 

The Imports Index remained in contraction territory in September, registering 48.3%, 1.3 percentage points lower than the 49.6% reported in August.”

The five manufacturing industries reporting growth in September are petroleum & coal products; food, beverage & 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; apparel, leather & allied products; primary metals; transportation equipment; nonmetallic mineral products; electrical equipment, appliances & components; paper products; machinery; chemical products; fabricated metal products; and computer & electronic products.