United States: Manufacturing continues to climb in September
October 1, 2013
In September, the ISM manufacturing index edged up to 56.2%, an increase over the 55.7% recorded in August. The increase contrasted market expectations of a fall to 55.0%. The index continues to build on the gains registered in the past four months and is currently at its highest point in more than two and a half years, reinforcing the perception that the U.S. economy is recovering.
All five ISM indicators now sit at or above the 50% threshold indicating expansion. Inventories registered the largest gain, moving up from 47.5% in August to 50% in September. Employment, supplier deliveries and production were also up. In contrast, new orders was the only area that fell compared to the previous month.
FocusEconomics Consensus Forecast panelists project that industrial output will rise 2.4% this year, which is down 0.1 percentage points from last month's forecast. For 2014, panelists see industrial production accelerating to a 3.5% expansion, which is down 0.3 percentage points from last month's projection.
Author: Carl Kelly, Economist