ISM: Manufacturing Economy Grows in September Despite Many Hurdles

New orders, employment, and production grew through September, while supplier deliveries slowed and backlogs lengthened, said the Institute for Supply Management in its latest Manufacturing ISM Report on Business. The Manufacturing PMI rose 1.2 percentage points to 61.1% in September, the second consecutive monthly increase, indicating continued expansion for the overall economy. As a three-month moving average, the index rose 0.2 percentage points to 60.2%.

“Business Survey Committee panelists reported that their companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing demand. All segments of the manufacturing economy are impacted by record-long raw materials lead times, continued shortages of critical materials, rising commodities prices and difficulties in transporting products. Global pandemic-related issues – worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems – continue to limit manufacturing growth potential.” said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee.