As per a report from the Institute of Supply Management (ISM), the Purchasing Manager’s Index in the US grew 1.8 per cent to 56 per cent in August. Timothy R Fiore, Chairperson, ISM Manufacturing Business Survey Committee, revealed five of the big six industry sectors expanded with new orders and production indexes continuing at strong expansion levels. Demand and consumption continued to drive expansion growth, with inputs representing near- and moderate-term supply-chain difficulties. ISM’s New Orders Index registered 67.6 per cent in August, a 6.1 per cent increase compared to July. This indicates that new orders grew for the third consecutive month following a dip in April.

Production Index registered 63.3 per cent in August, up 1.2 per cent from July, indicating growth for the third consecutive month and the highest level of performance since January 2018. The 15 industries out of 18 sector reporting growth in production during the month included textile mills. Delivery performance of suppliers to manufacturing organizations was slower in August, as the Supplier Deliveries Index registered 58.2 per cent. This is 2.4 per cent higher than the 55.8 per cent reported in July.

Textile mills were among 11 of 18 industries reporting slower supplier deliveries in August. The Inventories Index registered 44.4 per cent in August, down 2.6 per cent from July. Inventories contracted for the second straight month after two consecutive months of expansion. This is the lowest reading for the Inventories Index since January 2014.

The two industries reporting higher inventories in August were apparel, leather and allied products, and plastics and rubber products. Textile mills reported no change in inventories for the month.

The ISM Prices Index registered 59.5 per cent, a jump of 6.3 per cent compared to the July reading of 53.2 per cent , indicating raw materials prices increased for the third consecutive month. The 17 industries reporting paying increased prices for raw materials in August were led by textile mills and apparel, leather and allied products.