Manufacturing PMI at 47.2%, wood products dips as furniture sector grows

TEMPE, Ariz. — Economic activity in the manufacturing sector contracted in September for the sixth consecutive month and the 22nd time in the last 23 months, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:

"The Manufacturing PMI registered 47.2 percent in September, matching the figure recorded in August. The overall economy continued in expansion for the 53rd month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5 percent, over a period of time, generally indicates an expansion of the overall economy.) "

Fiore continues, "U.S. manufacturing activity contracted again in September and at the same rate compared to last month. Demand continues to be weak, output declined, and inputs stayed accommodative. Demand slowing was reflected by:

  • New Orders Index remaining in contraction territory.
  • New Export Orders Index contracting at a faster rate.
  • Backlog of Orders Index staying in strong contraction territory.
  • Customers' Inventories Index indicating customers' inventories were "about right." 

Wood products and furniture-related products both reported:

  • Lower backlogs

Wood products reported:

  • Manufacturing contraction 
  • Decline in new orders
  • Decrease in production
  • Lower inventories
  • Payment decreases for raw materials
  • Decrease in new exports
  • Decrease in new imports

 Furniture & related products reported:

  • Manufacturing growth
  • Slower supply delivery

In total, the five manufacturing industries reporting growth in September are: Petroleum & Coal Products; Food, Beverage & Tobacco Products; Textile Mills; Furniture & Related Products; and Miscellaneous Manufacturing. The 13 industries reporting contraction in September — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Wood Products; Apparel, Leather & Allied Products; Primary Metals; Transportation Equipment; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Chemical Products; Fabricated Metal Products; and Computer & Electronic Products.

To read the full report, visit prnewswire.com.

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Dakota Smith | Editorial Intern

Dakota Smith is an undergraduate student at New Jersey City University studying English and Creative Writing. He is a writer at heart, and a cook by trade. His career goal is to become an author. At Woodworking Network, Dakota is an editorial intern, ready to dive into the world of woods and words.