Updated: 02-Oct-17 10:45 ET
| September ISM Index |
 |
|
| Updated: 02-Oct-17 10:45 ET |
Highlights
- The ISM Manufacturing PMI jumped to 60.8 in September (Briefing.com consensus 57.8) from 58.8 in August. The dividing line between expansion and contraction is 50.0.
Key Factors
- According to the ISM, if the PMI for September is annualized, it corresponds to a 5.5% increase in real GDP annually
- The New Orders Index increased from 60.3 to 64.6
- The Prices Index jumped from 62.0 to 71.5
- The Production index rose from 61.0 to 62.2
- The Employment Index moved from 59.9 to 60.3
- The Inventories Index decreased from 55.5 to 52.5
Big Picture
- The key takeaway from the report, which stands at its highest level since May 2004, is that it was accompanied by the highest reading for the Prices Index (71.5) since May 2011. That understanding will feed a belief that the Federal Reserve is apt to raise the fed funds rate again at its December FOMC meeting.
| Category | SEP | AUG | JUL | JUN | MAY |
| Total Index | 60.8 | 58.8 | 56.3 | 57.8 | 54.9 |
| Orders | 64.6 | 60.3 | 60.4 | 63.5 | 59.5 |
| Production | 62.2 | 61.0 | 60.6 | 62.4 | 57.1 |
| Employment | 60.3 | 59.9 | 55.2 | 57.2 | 53.5 |
| Deliveries | 64.4 | 57.1 | 55.4 | 57.0 | 53.1 |
| Inventories | 52.5 | 55.5 | 50.0 | 49.0 | 51.5 |
| Export Orders | 57.0 | 55.5 | 57.5 | 59.5 | 57.5 |
| Prices paid (not seas adj) | 71.5 | 62.0 | 62.0 | 55.0 | 60.5 |
|
|