Manufacturing Employment Shows Some Resiliency
Manufacturing has been one of the challenging areas of the economy this year, but this morning we received data that shows a more positive outlook.
The Institute for Supply Management this morning released its Purchasing Managers’ Index, or PMI, a survey of purchasing managers at U.S. manufacturers. This summer this index indicated some weakness, but the composite PMI increased from 51.5 in September to 51.9 in October. Readings above 50 suggest expansion in the manufacturing sector, and readings below 50 suggest contraction.
Production accelerated from 52.8 in September to 54.6 in October. However, new orders slowed from 55.1 in September to 52.1 in October, while backlogged orders fell for the fourth consecutive month. Rounding out the PMI, the employment index moved from contraction in September at 49.7 to 52.9 in October, indicating expansion.
The positive reading is good news for manufacturing employment, which has been sluggish over the past year. Manufacturing payrolls have declined by 47,000 over the past 12 months while job openings have declined from their post-recession peak in April.
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