Purchasing Managers' Index Rose to 47.2% in August

Tempe, AZ, September 3, 2024-The Manufacturing Purchasing Managers’ Index (PMI) registered 47.2% in August, up 0.4 percentage point from the 46.8% recorded in July, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The overall economy continued in expansion for the 52nd 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 44.6%, 2.8 percentage points lower than the 47.4% recorded in July. 

The August reading of the Production Index (44.8%) is 1.1 percentage points lower than July’s figure of 45.9%. 

The Prices Index registered 54%, up 1.1 percentage points compared to the reading of 52.9% in July. 

The Backlog of Orders Index registered 43.6%, up 1.9 percentage points compared to 41.7 in July. The Employment Index registered 46%, up 2.6 percentage points from July’s figure of 43.4%.

The Supplier Deliveries Index indicated slowing deliveries, registering 50.5%, 2.1 percentage points lower than the 52.6% recorded in July. (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 50.3%, up 5.8 percentage points compared to July’s reading of 44.5%.

The New Export Orders Index reading of 48.6% is 0.4 percentage point lower than the 49% registered in July. 

The Imports Index remained in contraction territory in August, registering 49.6%, 1 percentage point higher than the 48.6% reported in July.

Two of the six of the largest manufacturing industries-food, beverage & tobacco products; and computer & electronic products-expanded in August, compared to none in July.

The five manufacturing industries reporting growth in August are primary metals; petroleum & coal products; furniture & related products; food, beverage & tobacco products; and computer & electronic products. The 12 industries reporting contraction in August-in the following order-are textile mills; printing & related support activities; nonmetallic mineral products; plastics & rubber products; electrical equipment, appliances & components; fabricated metal products; transportation equipment; wood products; machinery; paper products; chemical products; and miscellaneous manufacturing.