ISM Manufacturing PMI Rises to 51.5% in Sept.; Expansion Led by New Orders, Prices
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New data out Monday shows growth in U.S. manufacturing for the month of September, led by strong new orders and prices.
ISM said its manufacturing PMI was 51.5 percent last month, up from 49.6 percent in August and expectations for 49.7 percent.
The new orders index bumped 5.2 points higher to 52.3 in September, reversing three months of contraction. Petroleum & Coal Products and Apparel, Leather & Allied Products led the rise, ISM said.
Production rose 2.3 points to 49.5 percent, remaining in contraction for the second month. That's the first time since May 2009 that Production was in contraction for two back-to-back months.
Prices popped 4 points to 58 percent, making a total rise of 18.5 points in the last two months. In September, 27 percent of respondents reported paying higher prices, 11 percent reported paying lower prices, and 62 percent of supply executives reported paying the same prices as in August.
ISM's Employment Index registered 54.7 percent in September, which is 3.1 percentage points higher than the 51.6 percent reported in August. This is the 36th consecutive month of growth in the Employment Index.
Growth in manufacturing is always a good sign, though some would note that the acceleration isn't enough to trim unemployments numbers quite yet.
In a separate report today, construction spending fell 0.6 percent in August, versus expectations for a 0.4 percent rise.
U.S. markets are liking the news today, with the Nasdaq, S&P, and Dow Jones all up on the session.
ISM said its manufacturing PMI was 51.5 percent last month, up from 49.6 percent in August and expectations for 49.7 percent.
The new orders index bumped 5.2 points higher to 52.3 in September, reversing three months of contraction. Petroleum & Coal Products and Apparel, Leather & Allied Products led the rise, ISM said.
Production rose 2.3 points to 49.5 percent, remaining in contraction for the second month. That's the first time since May 2009 that Production was in contraction for two back-to-back months.
Prices popped 4 points to 58 percent, making a total rise of 18.5 points in the last two months. In September, 27 percent of respondents reported paying higher prices, 11 percent reported paying lower prices, and 62 percent of supply executives reported paying the same prices as in August.
ISM's Employment Index registered 54.7 percent in September, which is 3.1 percentage points higher than the 51.6 percent reported in August. This is the 36th consecutive month of growth in the Employment Index.
Growth in manufacturing is always a good sign, though some would note that the acceleration isn't enough to trim unemployments numbers quite yet.
In a separate report today, construction spending fell 0.6 percent in August, versus expectations for a 0.4 percent rise.
U.S. markets are liking the news today, with the Nasdaq, S&P, and Dow Jones all up on the session.
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