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
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.