TEMPE, Ariz. — Furniture industry orders contracted the most of all industries, and wood product manufacturers ranked third in terms of contraction in September 2022 compared to August.
Additionally, as economic activity in the manufacturing sector increased in September, with the overall economy posting a 28th consecutive month of growth, the overall manufacturing PMI index fell to its lowest level since May 2020, according to the latest ISM manufacturing business report.
The report was published by Timothy R. Fiore, CPSM, CPM, President of the Institute of Supply Management (ISM).
“September’s manufacturing PMI came in at 50.9%, down 1.9 percentage points from the 52.8% recorded in August. The figure indicates an expansion of the overall economy for the 28th consecutive month after a in April and May 2020. The manufacturing PMI figure is the lowest since May 2020, when it recorded 43.5%,” Fiore said.
Seven industries recorded a contraction in September compared to August, in the following order: furniture and related products; Textile factories; wood products; printing and related support activities; paper products; Chemical products; and fabricated metal products. Committee of inquiry among manufacturing companies.
Other highlights of the report include:
- The new orders index slipped back into contraction territory at 47.1%, down 4.2 percentage points from August’s 51.3%.
- The production index reading of 50.6% represents an increase of 0.2 percentage points from August’s figure of 50.4%.
- The price index recorded 51.7%, down 0.8% from August’s figure of 52.5%. This is the lowest reading for the index since June 2020 (51.3%).
- The Backorders Index recorded 50.9%, 2.1 percentage points lower than August’s reading of 53%.
- After just one month of expansion, the employment index contracted to 48.7%, down 5.5 percentage points from the 54.2% recorded in August.
“The U.S. manufacturing sector continues to expand, but at the slowest pace since the pandemic recovery began,” Fiore said. “After four consecutive months in which panelists’ businesses reported falling new order rates, the September index reading reflects businesses adjusting to a potential future drop in demand.