September 2017 Manufacturing ISM Report on Business; PMI at 60.8%

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The ISM Prices Index registered 71.5% in September, an increase of 9.5 percentage points from the August level of 62% indicating an increase in raw materials prices for the 19th consecutive month. In September, 45% of respondents reported paying higher prices, 2% reported paying lower prices, and 53% of supply executives reported paying the same prices as in August. The Prices Index is at its highest level since May 2011, when it registered 76.5%. Fiore comments, “The Business Survey Committee noted price increases in many areas, including metals (steel and aluminum); food ingredients; electronic components; lumber and wood products; basic chemicals; and plastics. The ongoing impacts from Hurricane Harvey are still largely unknown, and many respondents noted this uncertainty.” A Prices Index above 52.4%, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

Backlog of Orders

ISM's Backlog of Orders Index registered 58% in September, an increase of 0.5 percentage point from the 57.5% reported for August, indicating growth in order backlogs for the eighth consecutive month. Of the 89% of respondents who reported their backlog of orders, 29% reported greater backlogs, 13% reported smaller backlogs, and 58 percent reported no change from August.

New Export Orders

ISM's New Export Orders Index registered 57% in September, an increase of 1.5 percentage points when compared to the 55.5% reported for August, indicating growth in new export orders for the 19th consecutive month.

Imports

ISM's Imports Index registered 54% in September, a decrease of 0.5 percentage point when compared to the 54.5% reported for August, indicating that imports are growing in September for the eighth consecutive month but at a slightly slower rate compared to August.

About This Report

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of September 2017.

The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

About Institute for Supply Management

Institute for Supply Management (ISM) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM Report On Business, its highly regarded certification programs and the newly launched ISM Mastery Model. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

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