PMI leaps to another new high for 2013

ISM Index hits 56.2 percent in September as manufacturing optimism grows

10/02/2013


Manufacturing demand and business condition are on the rise. And, for the fourth straight month, so is the manufacturing PMI.

The Institute for Supply Management’s September manufacturing index rose again in September to its highest levels in two years. The 56.2% PMI reading was 0.5 percentage points higher than August’s 55.7% reading. The index is up over 7% since it dipped to 49.0% in May. That’s the only time in 2013 the index has been below the 50% growth threshold of the PMI.

Other PMI indexes also were on the rise. The Employment Index, for example, climbed to 55.4%, a 2.1 percentage point increase and the highest level of the year.

“Comments from the panel are generally positive and optimistic about increasing demand and improving business conditions,” said Bradley J. Holcomb, chairman of the Institute for Supply Management Manufacturing Business Survey Committee.

The 56.2% PMI reading is further fueling optimism from some industries that the accelerated growth may continue through the end of the year. Among the comments in the monthly PMI report:

  • "Global sales generally trending moderately higher." (Textile Mills)
  • "Slight increase in demand. Forecast looks better. 4Q looking better than 3Q — should begin to see demand increase in October/November." (Food, Beverage & Tobacco Products)
  • "Raw materials shortages continue. General trends are up, which enhances shortage issues." (Wood Products)
  • "Rising costs of China labor has us re-evaluating our current position in that country." (Computer & Electronic Products)
  • "Steady increase in work this month." (Primary Metals)
  • "Overall business is picking up." (Transportation Equipment)
  • "Outlook remains strong with housing market and customer orders." (Electrical Equipment, Appliances & Components)

“The past relationship between the PMI and the overall economy indicates that the average PMI for January through September (52.9%) corresponds to a 3.3% increase in real gross domestic product on an annualized basis,” Holcomb said. “If the PMI for September is annualized, it corresponds to a 4.4% increase in real GDP annually.”

The Last 12 Months



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
System integration: Best practices and technologies to help; Virtualization virtues; Cyber security advice; Motor system efficiency, savings; Product exclusives; Road to Hannover
Collaborative robotics: How to improve safety, return on investment; Industrial Internet of Things, Industrie 4.0: World views; High-performance HMI, Information Integration: OPC and OMG
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
click me