ISM: Manufacturing grew by 0.4 percent in August
Manufacturing grew in August, as the Institute for Supply Management Index registered 59.9 percent, 0.4 percentage point higher than the July reading of 59.5 percent.
This figure indicates expansion in the overall economy for the 15th month in a row after contraction in April 2020.
“The Manufacturing PMI continued to indicate strong sector expansion and U.S. economic growth in August. Four out of five subindexes that directly factor into the Manufacturing PMI were in growth territory," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee.
The New Orders Index registered 66.7 percent, increasing 1.8 percentage points from the July reading of 64.9 percent. The Production Index registered 60 percent, an increase of 1.6 percentage points compared to the July reading of 58.4 percent.
Fiore added that Business Survey Committee panelists reported that their companies and suppliers continue to struggle at unprecedented levels to meet increasing demand.
"All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products. The new surges of COVID-19 are adding to pandemic-related issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — that continue to limit manufacturing-growth potential. However, optimistic panel sentiment remained strong, with eight positive comments for every cautious comment," he said.
A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
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