Economy
ISM Manufacturing Index Higher Than Expected
Written by Sandy Williams
November 3, 2013
The ISM Manufacturing Index surprised economists with a PMI reading of 56.4 in October—the highest level in 2013. Expectations were for the index to fall to 55 this month but instead the PMI increased 0.2 percentage points from September’s reading of 56.2.
The indexes for new orders, production, inventories and employment all indicated growth. Of the 18 manufacturing industries surveyed only four reported contraction in October: Apparel, Leather & Allied Products; Primary Metals; Chemical Products; and Miscellaneous Manufacturing.
Survey participants were generally optimistic about business conditions. Questions on the impact of the government shutdown on business activity produced mixed responses. A few of the comments relevant to the steel industry were as follows:
“The government shutting down and threatening to go into a default position is causing all kinds of concerns in our markets.” (Fabricated Metal Products)
“Government spending continues to be slow in defense and military. The government shutdown and debt ceiling crisis did not affect business.” (Transportation Equipment
Seasonal demand has not decreased at the typical pace. Market showing resiliency in the residential market.” (Primary Metals)
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.
AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.