The U.S. Electrical Equipment, Appliances & Components industry segment showed contraction in September 2011, according to the latest Manufacturing ISM Report On Business. The industry segment also contracted in August, according to the previous month's report.
ISM reported that economic activity in the U.S. manufacturing sector overall expanded in September for the 26th consecutive month, and the overall economy grew for the 28th consecutive month.
One respondent to the ISM survey in the Appliance segment said: "Market is cautious, but still steady."
Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee, said respondents generally showed concern over the sluggish economy, political and policy uncertainty in Washington, and expected ongoing high unemployment.
Holcomb said that the September 2011 PMI was 51.6%, up 1 point from August, indicating expansion in the manufacturing sector at a slightly higher rate.
"The Production Index registered 51.2%, indicating a return to growth after contracting in August for the first time since May of 2009," Holcomb said. "The New Orders Index remained unchanged from August at 49.6%, indicating contraction for the third consecutive month. The Backlog of Orders Index decreased 4.5 percentage points to 41.5%, contracting for the fourth consecutive month and reaching its lowest level since April 2009, when it registered 40.5%."
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