Purchasing Managers' Index Records Increase in August

Tempe, AZ, September 1, 2017-The August Purchasing Managers’ Index (PMI) registered 58.8%, an increase of 2.5 percentage points from the July reading of 56.3%, according to the latest Manufacturing ISM Report On Business.

The New Orders Index registered 60.3%, a decrease of 0.1 percentage point from the July reading of 60.4%.

The Production Index registered 61%, a 0.4 percentage point increase compared to the July reading of 60.6%.

The Employment Index registered 59.9%, an increase of 4.7 percentage points from the July reading of 55.2%.

The Supplier Deliveries Index registered 57.1%, a 1.7 percentage point increase from the July reading of 55.4%.

The Inventories Index registered 55.5%, an increase of 5.5 percentage points from the July reading of 50%.

The Prices Index registered 62% in August, the same reading as July, indicating higher raw materials’ prices for the 18th consecutive month.

Comments from the panel reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in August, as well as supplier deliveries slowing (improving) and inventories increasing during the period. The Customers’ Inventories Index experienced a sharp decline in August compared to July.

Of the 18 manufacturing industries, 14 reported growth in August, in the following order: Textile Mills; Petroleum & Coal Products; Machinery; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Paper Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Chemical Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; and Food, Beverage & Tobacco Products.

Three industries reported contraction in August compared to July: Apparel, Leather & Allied Products; Primary Metals; and Furniture & Related Products.