Wednesday, October 1, 2014

ISM Manufacturing Index Declined in September

The ISM manufacturing index was 56.0 in September, a slowing of the pace from the previous month. However, the index is above its expansionary threshold of 50 with the third highest reading all year. All three of the strongest months for growth this year were in the third quarter.

The details of the report indicated an across the board slowdown in the pace of growth. New orders dropped 6.7 points to 60.0. The inventory index declined 0.5. As a result of inventories declining at a larger magnitude then new orders, the gap between new orders and inventories - a proxy for future production – shrank, recording 8.5 in September.

The Employment Index was another spot of weakness. The index declined 3.5 points to 54.6. Export orders also declined to 53.5 and backlogged orders shrank, moving below the expansionary threshold.

Read the ISM release.

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