August 2022 Manufacturing ISM Report On Business Indicates Production Grew for the 27th Consecutive Month

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector grew in August, with the overall economy achieving a 27th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The U.S. manufacturing sector grew in August, as the Manufacturing PMI registered 52.8 percent, the same reading recorded in July. The Manufacturing PMI continued to indicate sector expansion and U.S. economic growth in August.

ISM’s New Orders Index increased in August by 3.3 percentage points to 51.3 percent compared to 48 percent reported in July. This indicates that new order volumes returned to expansion after two months of contraction.

The Production Index registered 50.4 percent in August, 3.1 percentage points lower than the July reading of 53.5 percent, indicating growth for the 27th consecutive month.

ISM’s Employment Index registered 54.2 percent in August, 4.3 percentage points above the July reading of 49.9 percent. The index returned to expansion territory after three months of contraction.

The delivery performance of suppliers to manufacturing organizations was slower in August, as the Supplier Deliveries Index registered 55.1 percent, 0.1 percentage point lower than the 55.2 percent reported in July.

The Inventories Index registered 53.1 percent in August, 4.2 percentage points lower than the 57.3 percent reported for July. Manufacturing inventories expanded at a slower rate compared to July.

ISM’s Backlog of Orders Index registered 53 percent in August, a 1.7-percentage point increase compared to the 51.3 percent reported in July, indicating order backlogs expanded for the 26th straight month.

Ten manufacturing industries reported growth in August, in the following order: Nonmetallic Mineral Products; Petroleum & Coal Products; Transportation Equipment; Computer & Electronic Products; Printing & Related Support Activities; Plastics & Rubber Products; Primary Metals; Machinery; Miscellaneous Manufacturing; and Food, Beverage & Tobacco Products. The seven industries reporting contraction in August compared to July, in the following order are: Wood Products; Apparel, Leather & Allied Products; Furniture & Related Products; Paper Products; Chemical Products; Fabricated Metal Products; and Electrical Equipment, Appliances & Components.