After a one-month dip, the Institute for Supply Management’s PMI returned to positive territory in September, coming in at 51.5 percent.
The national index is based on a survey of supply executives and a reading above 50 indicates expansion in the manufacturing industry.
The August index registered at 49.4 percent, suggesting contraction in the industry.
September’s report showed improvements in a number of areas, including a 6 percentage point jump in new orders to 55.1 percent and a 3.2 point jump in production to 52.8 percent. Employment improved by 1.4 points, but was still contracting at 49.7 percent. Order backlogs showed a similar picture, increasing by 4 points, but remaining below 50 at 49.5 percent.
Respondents were generally positive in their comments on the industry. A respondent in chemical products said domestic and international sales were both up slightly, while a fabricated metal products respondent said sales were increasing and the outlook was positive for the rest of the year.
A plastics and rubber products respondent said demand was increasing after a lackluster month and some customers were pre-buying ahead of expected price increases. A respondent from petroleum and coal products said that oil prices had increased somewhat but remained at low levels, affecting revenue and purchasing power.
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