Manufacturing expands in September

Intelligent Economics > Analysis > Manufacturing expands in September
The Purchasing Manager’s Index in September registered at 53.2. A reading over 50 implies an expansion of the Manufacturing industry to the previous month. The PMI has remained over the threshold for over 10 months. The PMI subindexes of New orders and Production shrunk with respect to August 2021. Production, Employment, and Supplier Deliveries all expanded during September. New orders in September decreased to 45.2 for the first time after 8 months above the threshold. Production decreased to 50 in September, while manufacturing production was the same than in August. Manufacturing employment increased to 50 after contracting in August. Own inventories increased with respect to August meaning that in September, inventories in manufacturing establishments were lower. On a supplemental survey, manufacturing establishments pointed out the issues affecting the industry. The factors that most affected manufacturing establishments are a reduction in supplier’s deliveries (52%), a reduction in staff (35%), a reduction in inventory (19%), and others (23%). On the other hand, 16% of respondents said they were unaffected by the pandemic. The biggest challenge is the Human Resources area because of poor attendance and recruitment. Increased costs for raw materials are the second factor that most influenced them. Lastly, the supply chain and transportation delay is the third factor that most affected their operations.

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