By the Numbers: Manufacturing in September
Posted October 1, 2013 & filed under References
The manufacturing industry shocked economic experts today as the latest numbers (from September) revealed the fourth consecutive monthly increase in the market index.
The Numbers
Economists watching the numbers had predicted that the Purchasing Manager’s Index (PMI) would fall by .7% to 55.0 this month. The latest report from the Institute for Supply Management, however, paints a very different picture of a market that is picking up steam.
The PMI registered 56.2% in September, a .5% increase over August’s 55.7% closing number. September’s number is the highest the manufacturing sector has seen this year (15 months to be exact), and when combined with 52 consecutive months of positive economic growth the industry is looking to remain strong through the fourth quarter, possibly even into next year.
Even the employment numbers are looking strong. The ISM reports that the employment index for the entire sector registered the highest number of the year at 55.4%, a 2.1% increase from last month’s 53.3%.
Industry by Industry
Of the 18 manufacturing industries in the United States, 11 of them have reported positive growth. Leading the pack are the Electrical Equipment; Appliances & Components; and Food, Beverage, & Tobacco products industries. The only six industries reporting a contraction in September were Apparel, Leather & Allied Products; Primary Metals; Textile Mills; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Chemical Products.
Commodity Prices
Of the commodities that rose in price, aluminum, aluminum based products, caustic soda, corrugated boxes, HDPE resin, metal parts, oil, plastic resin, and steel based products were the highest. The only commodities that reported a price decrease were corn and latex.
The Jobs Impact
Many economists have now changed their tune when it comes to the outlook of the market. Although things certainly seem to be looking up for the manufacturing industry, will these positive numbers actually transform into jobs for the unemployed industry worker?
By Kevin Withers
