The Institute for Supply Management (ISM) came out with their September Manufacturing Index on Friday, October 1st.  The Purchasing Manager Index (PMI) came in at 54.4 which is a decrease from the 56.3 reported in August. This is the 14th month the index has shown growth in the manufacturing arena.

However, as you can see by the chart below the 54.4 number is the lowest number recorded by ISM since November 2009.


Source: Institute of Supply Management

The following information is taken from the ISM press release regarding their most recent manufacturing index:

“Manufacturing continued to grow in September, but at a slower rate as the PMI registered 54.4 percent, a decrease of 1.9 percentage points when compared to August's reading of 56.3 percent. 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. Therefore, the PMI indicates growth for the 17th consecutive month in the overall economy, as well as expansion in the manufacturing sector for the 14th consecutive month. Ore stated, "The past relationship between the PMI and the overall economy indicates that the average PMI for January through September (57.4 percent) corresponds to a 5.2 percent increase in real gross domestic product (GDP). In addition, if the PMI for September (54.4 percent) is annualized, it corresponds to a 4.2 percent increase in real GDP annually."

Of the 18 manufacturing industries, 13 are reporting growth in September, in the following order: Apparel, Leather & Allied Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Primary Metals; Miscellaneous Manufacturing; Transportation Equipment; Computer & Electronic Products; Furniture & Related Products; Plastics & Rubber Products; Chemical Products; Paper Products; Machinery; and Food, Beverage & Tobacco Products. The three industries reporting contraction in September are: Wood Products; Printing & Related Support Activities; and Nonmetallic Mineral Products.”



*Number of months moving in current direction
Source: Institute of Supply Management

For more information about the North American flat rolled steel markets you may wish to register for our SMU newsletter which is published three times per week. Registration also provides full access to our website: www.steelmarketupdate.com You can register on the website by clicking on the "free trial" logo and completing our form. All information collected is kept confidential.