According to the Institute for Supply Management reports, manufacturing growth has continued throughout the month of August. ISM’s production index rose to 63.3% in August, increasing 1.2 points from July. In addition, the purchasing manager’s index grew to 56%, increasing 1.8 points from July. Overall, new orders and prices increased by 6 points, while new orders index rose 6.1 points to 67.6%. Prices also increased 6.3 points to 59.5%.
Despite pandemic related influences back in April and May, PM, new orders, production, and price indexes all increased for the third month in a row. Trade grew for the second month in a row as new export orders grew to 53.3% and imports index grew to 55.6%.
Consumption and demand continues to drive expansive growth, while inputs remain constant with supply and demand.
Unfortunately, Contraction in manufacturing employment slowed but did not move into growth territory in August, sustaining a 13-month trend of shrinking workforce numbers. The ISM’s employment index for August is 46.4%, 2.1 points higher than it was in July.
The pandemic continues to influence the list of short supply commodities. Aluminum cans, electronic components, freight, and lumber were all in short supply for August, while gloves for PPE remained in short supply for the sixth month running.