September 2017 Institute for Supply Management
Submitted by Atlas Indicators Investment Advisors on October 9th, 2017
Both sides of the economy accelerated in September according to indicators from the Institute for Supply Management. Manufacturing’s tally improved to 60.8 from an already healthy 58.8 in August. Nonmanufacturing jumped to 59.8 from 55.3. In short, the economy looks good.
Both coincident and forward-looking components improved in the cyclically sensitive manufacturing segment. Production’s reading accelerated to 62.2 from 61.0, boding well for third quarter GDP figures due later this month. Employment increased to 60.3 from 59.9 despite the hurricane activity in the Gulf Coast. Finally, new orders (which will turn to output in the near future) surged to 64.6 from the already high reading of 60.3.
On the larger side of the ledger, non-manufacturing data was similarly strong. Business activity gained 3.8 to 61.3, boding well for third-quarter GDP also. Likewise, new orders erupted to 63.0, jumping 5.9 in the month; this should help America’s economy in the months and quarters ahead as these requisitions turn into actual output.
Comments from various industries are included in the report. Despite the monthly strength, many firms on both sides of the economy are concerned about the influence of the Gulf Coast hurricanes on the economy. Fortunately, the data collected are not indicating stresses beyond the subjective comment section. America’s economy continues growing, and forward-looking data within this indicator suggest the growth will continue.
