The overall economy grew for the seventy-sixth straight time, while the manufacturing sector expanded for the thirty-third consecutive month, the Institute for Supply Management reported Thursday.
According to the ISM’s monthly report on business, the ISM index decreased to 50.2 in September from 51.1 in August.
Economists polled by Thomson Reuters predicted the index would slip to 50.8.
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 slid to 38.0 from 39.0. The employment index fell to 50.5 from 51.2.
The production index dropped to 51.8 from 53.6, the new orders index fell to 50.1 from 51.7; the supplier deliveries index dipped to 50.2 from 50.7; the export orders index remained at 46.5; and the imports index slid to 50.5 from 51.5.
The inventories index held at 48.5; the customers’ inventories index climbed to 54.5 from 53.0; and backlog of orders fell to 41.5 from 46.5.
Respondents’ comments included:
- "Revenues and profits in our industry continue to [be] impacted by low crude and gas prices." (Petroleum & Coal Products)
- "North American business steady. International business trending bearish." (Chemical Products)
- "High value of dollar is affecting global procurement pricing." (Computer & Electronic Products)
- "Concerns about China downturn and its effect on our consumer confidence." (Fabricated Metal Products)
- "Overall business is slowing. Consumers are nervous. Not sure what is coming next." (Transportation Equipment)
- "Business is picking up." (Furniture & Related Products)
- "The orders from customers seem to be slowing a bit from the first part of the year. We have promises but not actual Purchase Order numbers." (Nonmetallic Mineral Products)
- "Sales revenue and profitability improving slowly. Getting close to 2015 budget/sales plan. Not seeing consistent trends up or down." (Electrical Equipment, Appliances & Components)
- "Continue to feel impact of oil and gas market slowdown. Aerospace demand has also been slower than expected. Consumer Electronics not robust." (Primary Metals)
- "Concern for AI [Avian Influenza] for poultry when bird migration begins." (Food, Beverage & Tobacco Products)
