|
Purchasing index flat
|
 |
October 1, 1998: 11:17 a.m. ET
September manufacturing index steady, but still shows contraction
|
NEW YORK (CNNfn) - U.S. manufacturing activity held the line in September after sliding for three consecutive months. But it remains in contraction territory as global market volatility washes up on domestic shores, the National Association of Purchasing Management said Thursday.
The purchasing managers' index, which tracks activity in the manufacturing sector, remained unchanged at 49.4 percent in September, while the production index grew 3.1 points to 53.4 percent from 50.3 percent in August.
Economists were predicting the key PMI index would fall to 49.3.
An index number above 50 generally suggests an economic expansion, whereas anything below 50 points to contraction. The number is calculated based on questionnaire responses by more than 350 industrial company executives.
The bond market continued it record-breaking momentum Thursday following the news. The benchmark 30-year Treasury bond was up 26/32 mid-morning for a yield of 4.90 percent.
"The manufacturing sector continued to contract in September," said association business survey chairman Norbert J. Ore. "This is the fourth month of decline following 22 consecutive months of growth. While both Production and New Orders grew in September, the PMI was influenced negatively by declines in the Inventories and Employment Indexes."
At the same time, NAPM's new orders index fell 0.8 percentage points to 50.1 percent last month, from 50.9 percent in August.
And the backlog of orders index came in at 46 percent, pointing to smaller backlogs than in August.
"The overall picture in September is one of negligible decline in manufacturing activity," Ore said. "Production registered significant growth, with nine industries reporting greater output. Deliveries of commodities were somewhat slower. However, commodities appear to be in ample supply as once again the short supply list is vacant." 
|
|
|
|
|
 |
|
