Tuesday, October 1, 2013

ISM Manufacturing Rose in September

The ISM Manufacturing Index rose in September to 56.2, beating expectations. The index is at its highest level since 2011, and is the fourth consecutive month of improvement. With strong readings the past 3 months, the third quarter average is 55.8, 5.6 index points above the second quarter average.

The details of the report were mixed. Production rose to 62.6, although it doesn’t fully offset August’s drop. It’s notable that the production index has remained above 60 for 3 consecutive months, the longest streak since early 2011. Employment also rose to 55.4 from 53.3, signaling strong gains in the labor market. However, new orders declined by 2.7 points to 60.5. All indexes remain in expansionary territory.

Backlogged orders remained below the expansionary threshold of 50, with a recording of 49.5. The gap between new orders and inventories – a proxy for future production – declined to 10.5 points, from 15.7 the previous month.

Read the ISM release.

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