TEMPE, AZ — Economic activity in the manufacturing sector grew in September for the 28th consecutive month, while the overall economy grew for the 47th consecutive month, say the nation's supply executives in the latest poll taken by ISM.

Norbert J. Ore, ISM chair, said, "The manufacturing sector grew for the 28th consecutive month in September based on the ISM data. The PMI made a strong move to the upside as New Orders and Production rose significantly. This move was supported by slower deliveries and growing order backlogs. While energy prices and the impact from Hurricane Katrina are major concerns, the manufacturing sector has regained significant momentum."

The 16 industries reporting growth in September included Electronic Components & Equipment; and Industrial and Commercial Equipment and Computers.

The PMI indicates that the manufacturing economy grew in September for the 28th consecutive month. The PMI for September registered 59.4%, an increase of 5.8 points when compared to August's reading of 53.6%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.

A PMI over 42.7%, over a period of time, generally indicates an expansion of the overall economy. The September PMI indicates that both the overall economy and the manufacturing sector are growing. The past relationship between the PMI and the overall economy indicates that the average PMI for January through September (55%) corresponds to a 4.5% increase in gross domestic product (GDP) on an annual basis. In addition, if the PMI for September (59.4%) is annualized, it corresponds to a 6.1% increase in GDP annually.

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