US manufacturing sector expands at slightly faster pace in September
The September 2011 Manufacturing ISM Report On Business showed 51.6% of respondents in the US manufacturing sector reporting growth in September versus the 50.6% which reported growth in August. This indicates that the US manufacturing sector is still growing and adding to US economic growth.
All of the major sub-indices from new orders to production to employment recorded an acceleration in growth. This is a good report in the face of weakening macro fundamentals globally. However, the US manufacturing sector is very close to contraction even so and this one month increase in data cannot be seen as portending a vigorous revival in growth.
- "The economy continues to be a drag on our business outlook. We are trying to deal with new and additional FDA regulations which are costing significant dollars. It is hard to recoup any of these additional costs in our pricing levels without losing significant sales volumes." (Chemical Products)
- "Market is cautious, but still steady." (Electrical Equipment, Appliances & Components)
- "Global demand for semiconductors is down and maybe not yet ‘bottomed out.’ Inventory reduction activities are a priority." (Computer & Electronic Products)
- "Still strong automotive demand." (Fabricated Metal Products)
- "Orders remain consistent and steady — no sign of lower demand." (Paper Products)
- "Japan supply chain issues are over, but exchange rates and raw material prices are hurting our profit." (Transportation Equipment)
- "We sense a weakening in demand, but it is not extreme at this point." (Plastics & Rubber Products)
- "Overall, business is improving with a measurable uptick in orders this month. Part of that is due to pre-holiday season orders." (Miscellaneous Manufacturing)
- "Business continues to be sluggish." (Furniture & Related Products)