Economy

ISM Reports PMI at Rate Highest In 3 Years

September 2, 2014

The August ISM Purchasing Manufacturing Index increased 1.9 points to a reading of 59.0, its highest reading since March 2011. Survey respondents report business is strong but expressed concern over geopolitical issues.

New orders and production each increased 3.3 percent to 66.7 and 64.5, respectively. The new orders index was the highest seen since April 2004 when it registered 67.1 percent.

Inventories grew in August as indicated by a 3.5 percent growth in the raw materials inventory index. Exports and imports grew at a faster rate last month, increasing by 2.0 and 4.0 points, respectively.

The index for prices increased at a slower rate, falling 1.5 points to 58.0. Employment continue to grow with an index reading just 0.1 percent below July.

Comments from respondents include:

–“The commercial building business is good, our business is up.” (Fabricated Metal Products)
–“Overall business conditions are flat. World issues taking a toll on business. Consumers are cutting back on spending.” (Transportation Equipment)
–“Demand is strong. Numbers are up over last year.” (Machinery)
–“Strongest month in years. Business is solid…Awesome!” (Primary Metals)

SMU Note: You can view the interactive graphic on the ISM index below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.

{amchart id=”116″ ISM Manufacturing Report on Business PMI History}