The overall economy grew for the sixty-fourth straight time, while the manufacturing sector expanded for the sixteenth consecutive month, the Institute for Supply Management reported Wednesday.
According to the ISM's monthly report on business, the ISM index fell to 56.6 in September from 59.0 in August.
Economists polled by Thomson Reuters predicted the index would slip to 58.5.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index increased to 59.5 from 58.0. The employment index declined to 54.6 from 58.1.
The production index crept to 64.6 from 64.5, the new orders index fell to 60.0 from 66.7; the supplier deliveries index dropped to 52.2 from 53.9; the export orders index decreased to 53.5 from 55.0; and the imports index fell to 53.0 from 56.0.
The inventories index decreased to 51.5 from 52.0; the customers' inventories index sank to 44.5 from 49.0; and backlog of orders decreased to 47.0 from 52.5.
Respondents' comments included:
"Business seems to be picking-up as fuel prices drop. More disposable income at the C store level where many of our products are sold." (Food, Beverage & Tobacco Products)
"Warehouse and multi-family construction seems to be continuing strong." (Fabricated Metal Products)
"World political unrest is creating additional defense requirements." (Transportation Equipment)
"We are seeing shipments up, year-over-year, in the 8 to10 percent range for last couple of months. This is good." (Apparel, Leather & Allied Products)
"Seen an increase in sales due to government fiscal year-end." (Computer & Electronic Products)
"Demand is pretty good overall. Freight continues to be a major issue." (Chemical Products)
"Things are a bit slower than the first half." (Printing & Related Support Activities)
"Outlook is very good. Demand seems to be growing." (Paper Products)
"Our search continues for good machinists and electrical engineers." (Machinery)
"Overall, orders are at the strongest point this year." (Miscellaneous Manufacturing)
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