USA PMI Increases for First Time since April 2010
USA Manufacturing Expands in August +0.8%
The Purchasing Managers' Index (PMI) of the Institute for Supply Management increased +0.8% to 56.3 in August. This was the first increase since the April 2010 peak of 60.4 and snapped a three consecutive month decline. The +0.8% increase was also the largest, and only, increase since the April 2010.
The ISM statement about the August 2010 PMI: "Manufacturing continued to grow in August as the PMI registered 56.3 percent, an increase of 0.8 percentage point when compared to July's reading of 55.5 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting."
Below is a chart of the latest 36 months of the Purchasing Managers' Index (PMI) of the Institute for Supply Management, from September 2007 through the latest month reported, August 2010. The PMI has been greater than 50, indicating USA manufacturing is expanding, since August 2009 - 13 consecutive months. As can be seen, the PMI bottomed in December 2008 at 32.5, ascended significantly through August 2009 to 52.8. The PMI eventually continued upwards to a peak of 60.4 in April 2010. Three consecutive monthly declines ensued until this latest August 2010 rebound. However, the three consecutive monthly declines still indicate USA manufacturing was expanding.
The 12-month (1 year) moving average of the PMI is 56.6, which the August value is just below at 56.3. The 24-month (2 year) moving average of the PMI is 48.7 and the 36-month (3 year) moving average is 49.0, which the August score of 56.3 continues well above. The PMI is a percentage - not a total. More about the PMI below the chart.
USA Manufacturing PMI Expands to 56.3 in August
Data courtesy of the Institute for Supply Management
About The PMI
The ISM describes the PMI, the USA manufacturing metric as: A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. A PMI in excess of 42 percent, over a period of time, generally indicates an expansion of the overall economy. The PMI is a composite of five indexes: New Orders, Production, Employment, Supplier Deliveries, and Inventories. 18 manufacturing industries are reported and represented in the PMI: Primary Metals; Apparel, Leather & Allied Products; Transportation Equipment; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Computer & Electronic Products; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; Printing & Related Support Activities. The five industries reporting contraction in August are: Furniture & Related Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Plastics & Rubber Products; and Machinery.
Institute for Supply Management ISM
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