The Institute for Supply Management (ISM) published its monthly manufacturing index, showing that the industry's growth was slower in September than it had been in August. Based on its research, the ISM placed the Purchasing Managers Index (PMI) at 56.6 percent, down 2.4 points from the previous month. However, any number above 50 indicates growth, and analysts expected a slight dip after manufacturing grew in August at the fastest rate since March 2011.

By market segments, the largest drop off came in new orders, whose growth fell from 66.7 percent to an even 60 percent. Two areas receded overall in September: orders backlog, which went from a positive 52.5 percent to contraction at 47 percent, and customers' inventories, the only index with negative growth in August, which fell further from 49 to 44.5 percent. On the flip side, production is the fastest growing area at 64.6 percent (64.5 in August). Prices also increased at an accelerated rate of 59.5 percent, a 1.5-point increase.

A Reuters poll showed that economists expected the index to be at 58.5 percent, nearly two points higher than it was. But despite the setback, the general feeling is positive: "The comments [from manufacturers] show a pretty upbeat mood," said ISM's Bradley Holcomb to the Wall Street Journal.

As this blog reported earlier this week, the ISM's Chicago Business Barometer showed that the Midwest's manufacturing sector is growing significantly faster than the nation's average, at a 60.5 percent rate, 3.9 points above the national index. Manufacturing ERP software can help contribute to the industry's continued expansion by automating and streamlining every step of a manufacturer's business processes.