by Calculated Risk on 10/01/2020 10:24:00 AM

The ISM manufacturing index indicated expansion in September. The PMI was at 55.4% in September, down from 56.0% in August. The employment index was at 49.6%, up from 46.3% last month, and the new orders index was at 60.2%, down from 67.6%.

From ISM: PMI® at 55.4% September 2020 Manufacturing ISM® Report On Business®

Economic activity in the manufacturing sector grew in September, with the overall economy notching a fifth consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The September PMI® registered 55.4 percent, down 0.6 percentage point from the August reading of 56 percent. This figure indicates expansion in the overall economy for the fifth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth. The New Orders Index registered 60.2 percent, a decrease of 7.4 percentage points from the August reading of 67.6 percent. The Production Index registered 61 percent, down 2.3 percentage points compared to the August reading of 63.3 percent. The Backlog of Orders Index registered 55.2 percent, 0.6 percentage point higher compared to the August reading of 54.6 percent. The Employment Index registered 49.6 percent, an increase of 3.2 percentage points from the August reading of 46.4 percent. The Supplier Deliveries Index registered 59 percent, up 0.8 percentage point from the August figure of 58.2 percent.

This was below expectations of 56.2%, and the employment index improved, but indicated some further slight contraction.

This suggests manufacturing expanded at a slightly slower pace in September than in August.