The Manufacturer Index and Distributor Index moved in opposite directions in September, according to the October Economic Indicator Report from the Industrial Supply Association. The ISA Distributor Index decreased to 57.1 in September from 66.3 in August, while the Manufacturer Index increased to 64.9 from 60.1.
“While the economy continues in expansion mode, there is inconsistency from month to month,” said Bryon Shafer, general manager of ASG Industrial and chair of ISA’s Strategic Information Committee. “Comments from survey participants demonstrate the mixed results, ranging from ‘Business conditions still continue to be solid and steady,’ to ‘Business conditions have become very sluggish.’ However, both distributors and manufacturers expect conditions to improve in October.”
For each index, a reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.