The manufacturing sector expanded in August and the overall economy grew for the 99th consecutive month, according to supply executives in the latest Manufacturing ISM Report on Business. The August PMI was 58.8 percent, an increase of 2.5 percentage points from the July reading.

The New Orders Index registered 60.3 percent, a decrease of 0.1 percentage points from the July reading of 60.4 percent. The Production Index registered 61 percent, 0.4 percentage points higher than the July reading of 60.6 percent. The Employment Index registered 59.9 percent, an increase of 4.7 percentage points from the July reading of 55.2 percent. The Inventories Index registered 55.5 percent, an increase of 5.5 percentage points from the July reading of 50 percent. The Prices Index registered 62 percent in August, the same reading as July, indicating higher raw materials’ prices for the 18th consecutive month.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

Of the 18 manufacturing industries, 14 are reporting growth in August in the following order: Textile Mills; Petroleum & Coal Products; Machinery; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Paper Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Chemical Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; and Food, Beverage & Tobacco Products. Three industries reported contraction in August compared to July: Apparel, Leather & Allied Products; Primary Metals; and Furniture & Related Products.

For more information, visit www.ism.ws.