The manufacturing sector grew for the third consecutive month, as the economy overall grew for the 51st consecutive month. The PMI rose to 55.7%in August, up from 55.4% in July, marketing the highest reading on the index since June 2011. Projections had the market dipping slightly, but rose as a pleasant surprise to industry forecasters.
New orders and production grew for the third consecutive month, while employment decreased in back-to-back months, which shows expansion. Inventories are contracting while supplier deliveries are slowing. Here are the rest of the results:
What does this mean for the manufacturing industry? Results have been mixed with Fabricated Metal, Furniture, Printing, Chemical, and Food & Beverage products seeing improvement, while Paper, Computer & Electronic, Machinery, and Transportation products are steady at best.
With varying results and expectations, no one really knows what is going to happen next. Most companies are staying cautious and waiting for the market to dictate their next moves. Companies that are proactive will not only be able to survive the unexpected flows of the manufacturing industry, but help dictate the variances to stay ahead of competitors. SBS Group has industry experts with proven solutions to help any manufacturing or distribution business. You can contact us for more information on the right solution for you.
- ISM Manufacturing index increases in August to 55.7 (calculatedriskblog.com)
- Manufacturing Jump in July: PMI Rises 4.5 Points (sbsgroupusa.wordpress.com)