ISM: 46 months of growth

Manufacturing News, Source : TheManufacturer.com
Published : 01 Sep 2005 20:05

Economic activity in the manufacturing sector grew in August for the 27th consecutive month, while the overall economy grew for the 46th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew for the 27th consecutive month in August based on the ISM data. While not as strong as in July, the PMI still indicates significant economic growth in both manufacturing and the overall economy. Both new orders and production continue at relatively strong levels. This month's comments from supply managers indicate great concern over recent new highs in the energy commodities. Many express concerns as to whether current business strength can be sustained if high energy prices persist.”

The PMI indicates that the manufacturing economy grew in August for the 27th consecutive month. The PMI for August registered 53.6 percent, a decrease of three percentage points when compared to July's reading of 56.6 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

A PMI in excess of 42.7 percent, over a period of time, generally indicates an expansion of the overall economy. The August PMI indicates that both the overall economy and the manufacturing sector are growing.

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