Wednesday, September 1, 2010

ISM Manufacturing Index Up 0.8 Point to 56.3; Employment Up; New Orders Down

In August, the Institute for Supply Management's Manufacturing Index rose 0.8 point to 56.3, reversing a three month trend of softening in the index. This move was a surprise to the upside, as it had been widely expected that the index would follow previously reported regional manufacturing indices and decline somewhat. The month’s improvement places the index at about the same level as it was in June, and significantly above the expansionary threshold of 50. Manufacturing activity continues to expand, even if not as quickly as earlier in the year.

The production component rose 2.9 points to 59.9. However, as a forward looking indicator of future production, the new orders component fell for the third second straight month. It declined 0.4 point to 53.1, the lowest level since June 2009. In contrast, the employment component improved for the second straight month, rising 1.8 points to 60.4.

10.09.01 (Source: Institute for Supply Management)

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