The Manufacturing ISM Report On Business, the Institute for Supply Management gauge of national factory activity crawled out of contraction to 51.5 in September. That’s an increase of 2.1 percentage points from the August reading of 49.4 percent.

However, while the manufacturing sector grew overall, more industries reported contraction than expansion.

Of the 18 manufacturing industries, 7 are reporting growth in September in the following order: Nonmetallic Mineral Products; Furniture & Related Products; Textile Mills; Food, Beverage & Tobacco Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Paper Products.

The 11 industries reporting contraction in September — listed in order — are: Printing & Related Support Activities; Petroleum & Coal Products; Wood Products; Apparel, Leather & Allied Products; Transportation Equipment; Machinery; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; and Electrical Equipment, Appliances & Components.

MANUFACTURING AT A GLANCE

September 2016 Index Series

Index

Sep Series

Index

Aug Percentage

Point

Change Direction Rate

of

Change Trend*

(Months) PMI® 51.5 49.4 +2.1 Growing From Contracting 1 New Orders 55.1 49.1 +6.0 Growing From Contracting 1 Production 52.8 49.6 +3.2 Growing From Contracting 1 Employment 49.7 48.3 +1.4 Contracting Slower 3 Supplier Deliveries 50.3 50.9 -0.6 Slowing Slower 5 Inventories 49.5 49.0 +0.5 Contracting Slower 15 Customers’ Inventories 53.0 49.5 +3.5 Too High From Too Low 1 Prices 53.0 53.0 0.0 Increasing Same 7 Backlog of Orders 49.5 45.5 +4.0 Contracting Slower 3 New Export Orders 52.0 52.5 -0.5 Growing Slower 7 Imports 49.0 47.0 +2.0 Contracting Slower 2 OVERALL ECONOMY Growing Faster 88 Manufacturing Sector Growing From Contracting 1

Manufacturing ISM® Report On Business ® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.