Manufacturing is Accelerating in the US


Great news for our friends in manufacturing. According to the Institute of Supply Management (ISM), September marked the third consecutive month of solid manufacturing activity.


The PMI, the index by which the ISM measures manufacturing activity, increased 0.5 percent of August's activity to 56.2-- the highest level for the index in 2013. Additionally, the PMI is above the 12-month average of 52.4, and has been over 50 in nine of the last ten month.

This great news is reflected by a recent report stating that Texas factories increased production at a faster pace in September than the previous month. According to the Dallas Federal Reserve, Texas' production index rose from 7.3 to 11.5, and September was the fifth consecutive month showing an increase. Meanwhile, the employment index for September was positive: 17% of employers were hiring, while 7% reported layoffs, and manufacturers in the state are optimistic about business conditions.

On a national level, U.S. manufacturing expanded in September for the fourth month in a row. Recent September numbers from the ISM are looking good:

  • The purchasing managers index (PMI) for manufacturing activity rose to 56.2% in September-- up from 55.7% in August.
  • New Orders, which are often referred to as "the engine that drives manufacturing," showed growth for the fourth month in a row.
  • Supplier Deliveries are slowing, which is good-- it means demand is strong.
  • There was a 2.1 point month-on-month jump in the PMI employment sub-index.
  • Production edged up 0.2 point, while new orders fell 2.7 points.
  • All three of the index's sub-components remained in growth territory.


According to Cliff Waldman, senior economist for the Manufacturers Alliance for Productivity and Innovation (MAPI), “The September manufacturing report adds to growing evidence that the muted recovery in global economic activity is benefiting U.S. manufacturing growth… Challenges remain in a global economy still struggling to find its balance in the wake of years of crisis and weakness."


Amidst political uncertainty and slow global recovery, this report is good news. Though Waldman points out that some ISM manufacturing reports occasionally overstate the growth in factory sector output, "data suggest a positive but at best moderate short-term trajectory."

The U.S manufacturing outlook is one of moderate but strengthening activity. As a LTL trucking company in Dallas, CSA can provide you with the best combination of service and price for shipping from the US to Canada and back. Connect with us today for a fast and accurate freight quote or to learn more.

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