The 2020 Mid-Year Economic Update_long

Manufacturing Sector Expands in August

August PMI grew at a faster pace than in July.

The manufacturing sector expanded in August, according to supply executives in the latest Manufacturing ISM Report on Business. The August PMI was 59 percent, 1.8 percentage points above July's reading of 57.1 percent, the fifteenth straight month of expansion.

The New Orders Index registered 66.7 percent, an increase of 3.3 percentage points from July. The Production Index registered 64.5 percent, 3.3 percentage points above July.

The Employment Index decreased slightly from July to 58.1 percent, though still indicated expansion. Inventories of raw materials increased 3.5 percentage points from the July reading to 52 percent.

"The August PMI is led by the highest recorded New Orders Index since April 2004 when it registered 67.1 percent," said Bradley Holcomb, chairman of the Institute for Supply Management Manufacturing Business Survey committee. "At the same time, comments from the panel reflect a positive outlook mixed with caution over global geopolitical unrest."

Of the 18 manufacturing industries, 17 reported growth in August: Plastics & Rubber Products; Furniture & Related Products; Fabricated Metal Products; Apparel, Leather & Allied Products; Wood Products; Printing & Related Support Activities; Miscellaneous Manufacturing; Paper Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Chemical Products; Primary Metals; Transportation Equipment; Computer & Electronic Products; Machinery; and Electrical Equipment, Appliances & Components.

The only industry reporting contraction in August is Textile Mills.

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