Manufacturing Advanced Again in September

The Institute of Supply Management Purchasing Managers Index, (PMI) registered 56.2 percent in September, an increase of 0.5 percentage point from the August reading. The 3MMA (three month moving average) of the index was 55.7 in September, the highest in over two years and continued to distance itself from the 50 threshold that marks the boundary between expansion and contraction (Figure 1).

The New Orders Index decreased in September by 2.7 percentage points to 60.5 percent, and the Production Index increased by 0.2 percentage points to 62.6 percent. The Employment Index registered 55.4 percent; an increase of 2.1 percentage points compared to the August reading of 53.3 percent, and is the highest reading for the year. Comments from the panel were generally positive and optimistic about increasing demand and improving business conditions.