ISA manufacturers, distributors indices diverge

Oct. 19, 2016

The October ISA Economic Indicator Report (EIR) from the Industrial Supply Association showed that the Manufacturer Index and the Distributor Index moved in opposite directions in September.

The ISA Manufacturer Index increased to 64.9 in September from 60.1 in August. Meanwhile, the ISA Distributor Index decreased to 57.1 in September from 66.3 in August. For each index, a reading above 50% indicates expansion, while a reading below 50% indicates contraction.

“While the economy continues in expansion mode, there is inconsistency from month to month,” said Bryon Shafer, general manager of ASG Industrial and chair of ISA’s Strategic Information Committee. “Comments from survey participants demonstrate the mixed results, ranging from ‘Business conditions still continue to be solid and steady,’ to ‘Business conditions have become very sluggish.’ However, both distributors and manufacturers expect conditions to improve in October.”

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