ISM Manufacturing index increases in August to 55.7 - InvestingChannel

ISM Manufacturing index increases in August to 55.7

The ISM manufacturing index indicated faster expansion in August. The PMI was at 55.7% in August, up from 55.4% in July. The employment index was at 53.3%, down from 54.4%, and the new orders index was at 63.2%, up from 58.3% in July.

From the Institute for Supply Management: August 2013 Manufacturing ISM Report On Business®

Economic activity in the manufacturing sector expanded in August for the third consecutive month, and the overall economy grew for the 51st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 55.7 percent, an increase of 0.3 percentage point from July’s reading of 55.4 percent. August’s PMI™ reading, the highest of the year, indicates expansion in the manufacturing sector for the third consecutive month. The New Orders Index increased in August by 4.9 percentage points to 63.2 percent, and the Production Index decreased by 2.6 percentage points to 62.4 percent. The Employment Index registered 53.3 percent, a decrease of 1.1 percentage points compared to July’s reading of 54.4 percent. The Prices Index registered 54 percent, increasing 5 percentage points from July, indicating that overall raw materials prices increased when compared to last month. Comments from the panel range from slow to improving business conditions depending upon the industry.”
emphasis added

ISM PMIClick on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was above expectations of 53.8% and suggests manufacturing expanded at a slightly faster pace in August.

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