The Institute for Supply Management (ISM) and Markit have both reported continued increases in their latest Purchasing Managers Indices (PMI). A PMI above 50 percent means that a sector is expanding, and ISM placed it at 57.1 percent in July, the highest level since April 2011. Markit has already released its August PMI, which is at 57.9 percent, and does not expect any variations in September. A PMI also provides fairly accurate predictions on the evolution of the gross domestic product (GDP).

"The third quarter as a whole has seen the strongest expansion since the sector began to recover from the financial crisis," said Markit chief economist Chris Williamson to Reuters. "We expect GDP to grow at an annualized rate of at least 3 percent and as much as 4 percent, depending to a large extent on how the vast services economy fared in September."

According to the data, which is compiled from extensive surveys of industry executives, the manufacturing sector has grown for 14 consecutive months. Of the specific areas that the ISM examines, backlogs and inventories are the only ones that are trending down, slightly below a 50 percent PMI. But Bradley J. Holcomb, the chair of ISM's Business Survey Committee, told Manufacturing.net that there is little cause for concern, and that a reduction in inventory is a byproduct of increased production and should rebound soon.

Inventory management software helps manufacturers keep track of their supplies regardless of how much production fluctuates. This way companies can ensure that their inventory is adjusted to their demand, and that they are neither falling short nor spending too much money on unnecessary supplies.