Purchasing Managers' Index Rose to 56% in August
Tempe, AZ, September 1, 2020-The August Purchasing Managers Index registered 56%, up 1.8 percentage points from the July reading of 54.2%, according to the latest Manufacturing ISM Report On Business.
This figure indicates expansion in the overall economy for the fourth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth.
The New Orders Index registered 67.6%, an increase of 6.1 percentage points from the July reading of 61.5%.
The Production Index registered 63.3%, up 1.2 percentage points compared to the July reading of 62.1%.
The Backlog of Orders Index registered 54.6%, an increase of 2.8 percentage points compared to the July reading of 51.8%.
The Employment Index registered 46.4%, an increase of 2.1 percentage points from the July reading of 44.3%.
The Supplier Deliveries Index registered 58.2%, up 2.4 percentage points from the July figure of 55.8%.
The Inventories Index registered 44.4%, 2.6 percentage points lower than the July reading of 47%.
The Prices Index registered 59.5%, up 6.3 percentage points compared to the July reading of 53.2%.
The New Export Orders Index registered 53.3%, an increase of 2.9 percentage points compared to the July reading of 50.4%.
The Imports Index registered 55.6%, a 2.5-percentage point increase from the July reading of 53.1%.
Demand and consumption continued to drive expansion growth, with inputs representing near- and moderate-term supply chain difficulties. Among the six biggest manufacturing industries, Food, Beverage & Tobacco Products remains the best-performing sector, with Chemical Products; Computer & Electronic Products; and Fabricated Metal Products growing strongly. Transportation Equipment also expanded, but at a low rate. Petroleum & Coal Products sunk into contraction territory.
Of the 18 manufacturing industries, 15 reported growth in August, in the following order: wood products; plastics & rubber products; food, beverage & tobacco products; textile mills; chemical products; computer & electronic products; primary metals; fabricated metal products; machinery; apparel, leather & allied products; nonmetallic mineral products; miscellaneous manufacturing; electrical equipment, appliances & components; paper products; and transportation equipment. The three industries reporting contraction in August are printing & related support activities; petroleum & coal products; and furniture & related products.