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Purchasing Managers Index: Difference between revisions
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== '''ISM''' == | == '''ISM''' == | ||
=== Methodology === | |||
=== September 2023 === | === September 2023 === | ||
The U.S. manufacturing sector contracted in September, as the Manufacturing PMI<sup>®</sup> registered 49 percent, 1.4 percentage points higher than the reading of 47.6 percent recorded in August and its highest figure since November 2022 (49 percent). '''This is the 11th month of contraction, but the third month of positive chang'''e. '''Of the five subindexes that directly factor into the Manufacturing PMI, two (the Production and Employment indexes) are in expansion territory, up from none in August, breaking a three-month streak of no such growth'''. This good news is somewhat counterbalanced by the New Orders Index logging its 13th month in contraction territory, though at a slower rate. Of the six biggest manufacturing industries, two — Food, Beverage & Tobacco Products; and Petroleum & Coal Products — registered growth in September,” says Fiore. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting. | |||
==== Manufacturing ==== | |||
The U.S. manufacturing sector contracted in September, as the Manufacturing PMI<sup>®</sup> registered 49 percent, 1.4 percentage points higher than the reading of 47.6 percent recorded in August and its highest figure since November 2022 (49 percent). '''This is the 11th month of contraction, but the third month of positive chang'''e. '''Of the five subindexes that directly factor into the Manufacturing PMI, two (the Production and Employment indexes) are in expansion territory, up from none in August, breaking a three-month streak of no such growth'''. This good news is somewhat counterbalanced by the New Orders Index logging its 13th month in contraction territory, though at a slower rate. Of the six biggest manufacturing industries, two — Food, Beverage & Tobacco Products; and Petroleum & Coal Products — registered growth in September,” says Fiore. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.<ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/september/</ref> | |||
Seventy-one percent of manufacturing gross domestic product (GDP) contracted in September, up from 62 percent in August. More importantly, the share of sector GDP registering a composite PMI<sup>®</sup> calculation at or below 45 percent — a good barometer of overall manufacturing weakness — was 6 percent in September, compared to 15 percent in August and 25 percent in July, a clear positive. '''The past relationship between the Manufacturing PMI<sup>®</sup> and the overall economy indicates that the September reading (49 percent) corresponds to a change of plus-0.1 percent in real gross domestic product (GDP) on an annualized basis''' | Seventy-one percent of manufacturing gross domestic product (GDP) contracted in September, up from 62 percent in August. More importantly, the share of sector GDP registering a composite PMI<sup>®</sup> calculation at or below 45 percent — a good barometer of overall manufacturing weakness — was 6 percent in September, compared to 15 percent in August and 25 percent in July, a clear positive. '''The past relationship between the Manufacturing PMI<sup>®</sup> and the overall economy indicates that the September reading (49 percent) corresponds to a change of plus-0.1 percent in real gross domestic product (GDP) on an annualized basis''' | ||