The manufacturing sector expanded in September, according to the latest Manufacturing ISM Report on Business. According to the Institute for Supply Management, the Purchasing Managers Index was 51.6 percent, an increase of 1 percentage point from August, indicating expansion in the manufacturing sector at a slightly higher rate.

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The Production Index registered 51.2 percent, indicating a return to growth after contracting in August for the first time since May 2009. The New Orders Index remained unchanged from August at 49.6 percent, indicating contraction for the third consecutive month.

The Backlog of Orders Index decreased 4.5 percentage points to 41.5 percent, contracting for the fourth consecutive month and reaching its lowest level since April 2009, when it registered 40.5 percent.

Comments from respondents generally reflect concern over the sluggish economy, political and policy uncertainty in Washington, and forecasts of ongoing high unemployment that will continue to put pressure on demand for manufactured products.

Of the 18 manufacturing industries, 12 are reporting growth in September, in the following order: Wood Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Machinery; Miscellaneous Manufacturing; Transportation Equipment; Plastics & Rubber Products; Printing & Related Support Activities; Chemical Products; and Computer & Electronic Products. The six industries reporting contraction in September – listed in order – are: Primary Metals; Textile Mills; Furniture & Related Products; Fabricated Metal Products; Paper Products; and Electrical Equipment, Appliances & Components.