The ISM PMI report issued today is the highest reading for the year to date.
PMPA’s Business Trends Index for August was up substantially (6.7%), and we believe that the PMPA index is a leading indicator for industrial activity. ( You can’t ship your manufactured goods if our precision machined components aren’t in them.)
The September ISM PMI reaching its high for the year validates our belief in the Business Trends as a leading indicator.
“The PMI™ registered 56.2 percent, an increase of 0.5 percentage point from August’s reading of 55.7 percent. September’s PMI™ reading is the highest of the year, leading to an average PMI™ reading of 55.8 percent for the third quarter. The New Orders Index decreased in September by 2.7 percentage points to 60.5 percent, and the Production Index increased by 0.2 percentage point to 62.6 percent. The Employment Index registered 55.4 percent, an increase of 2.1 percentage points compared to August’s reading of 53.3 percent, which is the highest reading for the year.“- Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.
As businessmen and women, we’re obviously pleased with the Increase in the PMI.
However, The employment index also reached its highest point for the year to 55.4, up 2.1 %.
We continue to be optimistic about employment opportunities in advanced manufacturing, and ISM report supports our claim for this too.