Economy
Manufacturing Declines in August, Says ISM
Written by Sandy Williams
September 1, 2016
Manufacturing contracted in August after five consecutive months of growth, according to the latest Manufacturing Report on Business from the Institute of Supply Management.
ISM reported the August PMI at 49.4, down 3.2 points from July at 52.6 percent. It was the first time the index has slipped since February of this year. New orders and production were down 7.8 percent and 5.8 percent, respectively. Order backlogs decreased at a faster rate.
Employment levels registered an index reading of 48.3, down 2.1 percent from July. Raw material inventories were slightly tighter as prices for preproduction material increased for the sixth month. Customer inventories were down as well, contracting from 51.0 to 49.5.
Imports decreased from June, falling 5 points. New export orders were unchanged at 52.5.
The report indicated that the overall economy grew at a slower rate and the manufacturing sector contracted in August.
Primary metals and fabricated metal products were among the 11 industries reporting contraction in August.
Some of the comments by survey respondents were:
- “Commercial construction continues to be strong, and therefore our business is very good.” (Fabricated Metal Products)
- “This past month, sales increased over the trend from the first half of the year. There seems to be a general, albeit slight, loosening of capital purse strings.” (Machinery)
- “Business conditions are generally flat.” (Transportation Equipment)
- “Oil prices continue to seek a ‘footing’; rig count slowly increasing.” (Petroleum & Coal Products)
- “We have been getting lots of inquiries, but not a lot of sales order placements.” (Chemical Products)
Below is a graph showing the history of the Institute of Supply Management Index. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
New York state manufacturing falls back into contraction
After a brief pickup in September, manufacturing activity in New York state retreated into contraction, according to the October Empire State Manufacturing Survey.
Dodge Momentum drops on moderating data center growth
Slowing growth in data center planning caused the Dodge Momentum Index (DMI) to pull back in September. The decline followed five months of growth after the index hit a two-year low in March.
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.