The Institute of Supply Management reported that the Purchasing Managers' Index (PMI) hovered just above the expansion line in August at 50.6, down from 50.9 in July. This represents 25 consecutive months of growth, but is the lowest index over the 25-month period. A PMI over 50 indicates growth while a PMI under 50 indicates contraction in the manufacturing sector of the economy. The index reached a low of 32.5 in December 2008 but then recovered more quickly than other areas of the economy. Manufacturing has been a bright spot in the economy and the dramatic drop in the last two months is certainly a cause for concern about where the economy is headed for the balance of 2011. The vertical bars in the graph represent recessions.
