US Factory Growth Slows More than Expected: ISM


The Institute for Supply Management’s Manufacturing PMI in the US fell to 59.8 in September of 2018 from 61.3 in August which was the highest reading since May of 2004. Figures came slightly below market expectations of 60.1 as new orders and inventories rose less. Manufacturers remain concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations.

Slowdowns were seen in new orders (61.8 from 65.1 in August), supplier deliveries (61.1 from 64.5), inventories (53.3 from 55.4) and backlogs of orders (55.7 from 57.5). On the other hand, production (63.9 from 63.3), employment (58.8 from 58.5) and new export orders (56 from 55.2) rose faster and price pressures eased (66.9 from 72.1).

Of the 18 manufacturing industries, 15 reported growth in September, in the following order: Textile Mills; Miscellaneous Manufacturing; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; Apparel, Leather & Allied Products; Paper Products; Electrical Equipment, Appliances & Components; Chemical Products; Petroleum & Coal Products; Transportation Equipment; Furniture & Related Products; Fabricated Metal Products; and Nonmetallic Mineral Products. The only industry reporting contraction in September is Primary Metals.

US Factory Growth Slows More than Expected: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
10/1/2018 2:10:11 PM