For some time, the Institute for Supply Management (ISM) has reported increases in productivity for the manufacturing sector. That trend continues with the announcement of the August 2014 Purchasing Manager's Index (PMI) report, which notes a three-year high for manufacturing activity and overall improvement to the economy that's lasted for 63 months.
Riding an expansion that has sustained for more than a year, the industry saw growth of almost 2 percent, which a press release from the ISM notes is "the highest reading since March 2011." It is a time to continue investing in CNC machine shops, especially for companies that work in food manufacturing, commercial building and electronics. In fact, out of all the 18 industries the report takes into account, all except textile mills saw some sort of financial growth.
In addition to the general PMI, new orders and production each also increased by more than 3 percent. Inventories jumped up even higher for an overall series index of 52 percent.
Bloomberg quotes economist Brian Jones, who described the immense enthusiasm surrounding manufacturing and the potential these trends hold for the future.
"The manufacturing sector is just on fire right now," he said. "You've got increased demand for workers, and the more people working, and the more money they are making, the more money they'll spend." Another economic professional, Joel Naroff, called the latest figures "about as good as it gets," according to the Wall Street Journal.
More growth will likely lead to an even more urgent need for personnel, facilities and equipment as Jones indicates. Machining companies are important places to turn as manufacturers respond to this latest example of a confident market.