Appliance Manufacturing Continues Economic Growth in September
Oct 4, 2010
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The Electrical Equipment, Appliances & Components industry was one of 13 manufacturing industries reporting growth in September 2010, according to U.S. supply executives surveyed for the latest Manufacturing ISM Report On Business.
The Institute for Supply Management report showed economic activity in the manufacturing sector expanded in September 2010 for the 14th consecutive month, and the overall economy grew for the 17th consecutive month. Of the 18 manufacturing industries included in the survey, 13 reported growth in September. The 13 industries reported economic growth in the following order:
• apparel, leather & allied products
• fabricated metal products
• electrical equipment, appliances & components
• primary metals
• miscellaneous manufacturing
• transportation equipment
• computer & electronic products
• furniture & related products
• plastics & rubber products
• chemical products
• paper products
• food, beverage & tobacco products
The three industries reporting contraction in September were:
• wood products
• printing & related support activities
• nonmetallic mineral products.
"While the headline number shows relative strength this month as the PMI reading of 54.4 percent is still quite positive, the overall picture is less encouraging," said Norbert J. Ore, CPSM, C.P.M., chair of the ISM Manufacturing Business Survey Committee. "The growth of new orders continued to slow, as the index is down significantly from its cyclical high of 65.9 percent (January 2010). Production is currently growing at a faster rate than new orders, but it typically lags and would be expected to weaken further in the fourth quarter. Manufacturing has enjoyed a stronger recovery than other sectors of the economy, but it appears that weaker growth is the expectation for the fourth quarter. Both the Inventories and Backlog of Orders Indexes are sending strong negative signals of weakening performance in the sector."
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