The August 2017 ISM PMI report was issued this morning, reporting that “Economic activity in the manufacturing sector expanded in August, and the overall economy grew for the 99th consecutive month…”
“Manufacturing expanded in August as the August PMI® registered 58.8 percent, an increase of 2.5 percentage points from the July reading of 56.3 percent. This indicates growth in manufacturing for the 12th consecutive month and is the highest reading since April 2011, when the index registered 59.1 percent.“
Let us repeat: Growth in manufacturing for the 12th consecutive month- and highest reading since April 2011, when the index registered 59.1 percent.
This is Great News!
“The New Orders Index registered 60.3 percent, a decrease of 0.1 percentage point from the July reading of 60.4 percent. The Production Index registered 61 percent, a 0.4 percentage point increase compared to the July reading of 60.6 percent. The Employment Index registered 59.9 percent, an increase of 4.7 percentage points from the July reading of 55.2 percent…”– Timothye R. Fiore, ISM PMI August 2017 Report,
These are strong, positive indicators for manufacturing.
Markets that our companies serve that went up in August from July included Machinery; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Plastics & Rubber Products; and Food, Beverage & Tobacco Products. (Our shops make nozzles and fittings for beverage delivery systems as well as other components for food and beverage manufacturing, preparation, packaging, and delivery.)
It is difficult to be pessimistic in the short term about the prospects for manufacturing. This report beat expectations (56.6) by 2.2 percentage points. Coming in at 58.8 tells us that manufacturing expanded in August at a stronger rate than in July. And that it beat the ‘experts’ consensus.
We look forward to seeing what our August Business Trends Report tells us about our piece of this manufacturing optimism when it comes out later in September.