1 September 2009

[US] Manufacturing Makes First Gain in 18 Months

The following is excerpted from the 1 September 2009 edition of “The Journal of Commerce”.

[US] Manufacturing activity expanded in August when compared with the previous month, for the first time in 18 months, according to the latest Manufacturing ISM Report on Business, which surveys supply executives.

The Institute for Supply Management said its PMI index rose to 52.9 percent in August, the highest level since June 2007, driven by growth in new orders and production. An index above 50 indicates growth. Employment and inventories were still contracting in August, and supplier deliveries were slower than in July. But the new orders index is up 9.6 points to 64.9 percent, the highest since December 2004.

"The year-and-a-half decline in manufacturing output has come to an end, as 11 of 18 manufacturing industries are reporting growth when comparing August to July,” said Norbert J. Ore, chair of the ISM manufacturing business survey committee. “While this is certainly a positive occurrence, we have to keep in mind that it is the beginning of a new cycle and that all industries are not yet participating in the growth.” …