Updated: 01-Oct-20 10:38 ET

September ISM Manufacturing Index

Updated: 01-Oct-20 10:38 ET

Highlights

• The ISM Manufacturing Index for September checked in at 55.4% (Briefing.com consensus 56.0%) versus 56.0% in August.
• The dividing line between expansion and contraction is 50.0%, so the September reading suggests there was a continued expansion in manufacturing activity, albeit at a slightly slower pace than the month before.

Key Factors

• The New Orders Index fell to 60.2% from 67.6%.
• The Employment Index moved up to 49.6% from 46.4%.
• The Backlog of Orders Index edged higher to 55.2% from 54.6%.
• The Prices Index rose to 62.8% from 59.5%.
• The Customers' Inventories Index slumped to 37.9% from 38.1% - lowest since June 2010 and a seeming positive for future production activity.

Big Picture

• The key takeaway from the report is that it underscores the view that the manufacturing sector continues to recover after its sharp downturn in the April-May period when the index was running at 41.5% and 43.1%, respectively.

Category	SEP	AUG	JUL	JUN	MAY
Total Index	55.4	56.0	54.2	52.6	43.1
Orders	60.2	67.6	61.5	56.4	31.8
Production	61.0	63.3	62.1	57.3	33.2
Employment	49.6	46.4	44.3	42.1	32.1
Deliveries	59.0	58.2	55.8	56.9	68.0
Inventories	47.1	44.4	47.0	50.5	50.4
Export Orders	54.3	53.3	50.4	47.6	39.5
Prices paid (not seas adj)	62.8	59.5	53.2	51.3	40.8