Manufacturers saw more new orders and production in September albeit at a slower rate than August, according the chair of the private Institute for Supply Management.
“[T]he recovery broadened as the number of industries reporting growth increased from 11 to 13 . . . It appears the fundamentals for continuing recovery are still at work as inventories and sales are gaining balance,” said Norbert J. Ore of the ISM.
Thirteen of 18 industries reported growth. The top five growth industries in the report were: Wood Products; paper products; apparel, leather & allied products; transportation equipment; and textile mills.
Industries seeing contraction were: Primary metals; furniture and related products; plastics and rubber products; and machinery.
Twelve of 18 manufacturing industries expect to receive some benefit from the government’s economic stimulus program known as the American Recovery and Reinvestment Act.
The ISM’s Purchasing Managers Index (PMI) was 52.6 in September compared with 52.9 in August. Figures above 50 indicate growth while figures below indicate contraction.