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The ISM Manufacturing PMI is a monthly survey-based gauge of U.S. factory activity. In September 2026, it was 54.5, while its New Orders Index rose 1.6 points to 55.3. Both readings were above 50, indicating expansion in the respective diffusion measures—not a measured percentage increase in factory output or order dollars.
What the ISM Manufacturing PMI measures
The Institute for Supply Management (ISM) asks purchasing and supply executives about current-month manufacturing conditions compared with the previous month. Its panel covers 18 manufacturing industries organized by NAICS and stratified by each industry’s contribution to GDP. The survey reflects respondents’ reports within their organizations; ISM does not represent that every company uses the same data-collection procedures.
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The Manufacturing PMI is a composite diffusion index with five equally weighted components: New Orders, Production, Employment, Supplier Deliveries, and Inventories. Four components—New Orders, Production, Employment, and Inventories—are seasonally adjusted; Supplier Deliveries is not. ISM’s calculation guidance says to calculate unadjusted diffusion indexes, divide the four adjusted series by their seasonal factors, and average the five resulting values. Seasonal-adjustment factors can be updated annually. See ISM’s Manufacturing Report on Business and methodology and calculation guidance.
How to interpret a PMI reading
For the manufacturing-sector measure, 50 is the dividing line: a reading above 50 generally indicates expansion compared with the previous month, while a reading below 50 generally indicates contraction. The distance from 50 describes the strength of the diffusion signal; it is not a percentage change in production, sales, or GDP.
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ISM gives a separate, longer-run rule of thumb for the broader economy: a Manufacturing PMI above 47.5 over time generally indicates overall economic expansion. That is not the same threshold as the 50 mark for manufacturing, nor does it guarantee a particular result in any one month.
What a rise in New Orders means
A rising New Orders Index means the balance of surveyed manufacturers reporting better month-to-month orders has strengthened. ISM’s positive-direction diffusion indexes count the percentage reporting improvement plus half the percentage reporting no change. The result is a breadth-oriented signal: it captures how reports are distributed, not the dollar value or volume of orders.
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In September 2026, New Orders registered 55.3, up 1.6 index points from 53.7 in August. The September response mix was 23.4% reporting higher orders, 61.1% reporting no change, and 15.5% reporting lower orders. Because the index was above 50, ISM classified new orders as expanding; it was the ninth consecutive expansion month after four months of contraction. ISM reported that 10 industries had growth in new orders and four had declines, so the national reading did not mean every industry grew.
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September 2026: the composite and its components
The September 2026 report provides context for the New Orders rise. The Manufacturing PMI edged down even as New Orders strengthened; component readings describe different kinds of change and should not be read as rates of change in output.
| Measure | September 2026 reading | What ISM’s reading indicated |
|---|---|---|
| Manufacturing PMI | 54.5, down 0.1 point from August’s 54.6 | Expansion |
| New Orders | 55.3, up 1.6 points from August’s 53.7 | Expansion |
| Production | 56.7 | Expansion |
| Employment | 52.7 | Expansion |
| Supplier Deliveries | 59.0 | Deliveries slowing; a higher reading here signals slower deliveries, not faster factory output |
| Inventories | 48.6 | Contraction |
These are September 2026 ISM survey readings. The index levels and month-to-month point changes come from ISM’s September Manufacturing Report on Business.
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What the index can—and cannot—tell you
- It can show direction and breadth. Above 50 indicates that improvement reports outweigh deterioration reports under the diffusion-index calculation; unchanged responses count half-positive.
- It cannot quantify the change in output or orders. A reading of 55.3 does not mean orders rose 5.3%, and a 1.6-point rise does not mean order value increased by 1.6%.
- It does not establish that all manufacturers share the same conditions. Industry results can differ; in September, ISM reported both growing and declining industries for new orders.
- It is one economic indicator, not a complete account. ISM advises comparing the report with other economic sources when making decisions. Regional report information is not used to calculate the national report.
When and how the report is released
ISM says its Manufacturing Report is released on the first business day of the month at 10:00 a.m. The September 2026 readings refer to the survey report for that month, rather than a real-time count of orders placed on the release date. The current report and release information are available from ISM PMI Reports.
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