ISM Manufacturing Index for August 2016

Earlier today, the Institute for Supply Management (ISM) released their Manufacturing Purchasing Manager's Index (PMI) for August 2016:

Predicted: 52.2%
Actual: 49.4%

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 made-in-the-USA sector contracted.

The previous PMI reading was 52.6%.

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

•     "We have been getting lots of inquiries, but not a lot of sales order placements."
  (Chemical Products)

•     "Business was flat this month overall."
  (Computer and Electronic Products)

•     "Continued strong market demand for our products related to construction."
  (Nonmetallic Mineral Products)

•     "Commercial construction continues to be strong, and therefore our business is very good."
  (Fabricated Metal Products)

•     "New product distribution is increasing."
  (Food, Beverage and Tobacco Products)

•     "This past month, sales increased over the trend from the first half of the year. There seems to be a general, albeit slight, loosening of capital purse strings."
  (Machinery)

•     "Medical device is still strong."
  (Miscellaneous Manufacturing)

•     "Business conditions are generally flat."
  (Transportation Equipment)

•     "Hard to find production associates. Unemployment in the area is around 4 percent. Can’t get enough employees [which] leads to lots of overtime."
  (Plastics and Rubber Products)

•     "Oil prices continue to seek a ‘footing’; rig count slowly increasing."
  (Petroleum and Coal Products)
  

Click here to view the complete ISM report.

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