The ISM Manufacturing report for September exceeded expectations for the third straight month. While economists were expecting a level of 55.1, the actual reading came in at 56.2. The ISM Manufacturing report has now risen for four straight months, and the increase over that period is the largest four-month increase since October 2009.
Looking at the internals of today's report shows that the report was pretty strong across the board. Of the index's 10 sub-components, seven increased this month. While Backlog Orders remain below 50, that category did see the largest month/month increase in September. New Orders was one of the three components that decreased, but at a current level of 60.5, that is still a rather impressive reading. The only other two categories that declined were Export and Import Orders. Compared to one year ago, today's report was equally impressive. Here, again, seven out of 10 components increased. Production was the biggest gainer over the last year, jumping by 11.2 points to 62.6 from 51.4.
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