Economy: ISM Manufacturing Index for August 2013

Tuesday, September 03, 2013

ISM Manufacturing Index for August 2013

Earlier today, the Institute for Supply Management (ISM) released their Purchasing Manager's Index (PMI) for August 2013:

Predicted: 53.8%
Actual: 55.7%

Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the factory sector contracted.

Last month, the PMI was 55.4%.

The following is a sampling of quotes from a diverse pool of U.S. manufacturers:

"...'Slight improvements in both domestic and international sales.' (Fabricated Metal Products)

    'Business is slowing down, not sure why — but we may end up below last year's sales levels, whereas we had forecast 6.5 percent growth.' (Miscellaneous Manufacturing)

    'Material prices continue to be favorable; business is steady.' (Paper Products)

    'Slowing down slightly, but still stronger than last year by 20 percent.' (Furniture & Related Products)

    'Military slowdown affecting business.' (Computer & Electronic Products)

    'Summer seasonal businesses are doing well after a late start.' (Printing & Related Support Activities)

    'Still not seeing the year we had expected. Cautious about the balance of 2013.' (Machinery)

    'Tight government spending still affecting business.' (Transportation Equipment)

    'With improved weather outlook in the central states, agricultural prices are relaxing year over year.' (Food, Beverage & Tobacco Products)

    'We have benefitted from the Yen; seeing a 20 percent decrease in material costs from 2012 to 2013.' (Chemical Products)..."