US manufacturing steady in September, input prices increase
The new orders index rose to 55.3, but the prices-paid gauge jumped to 77.9, signaling persistent factory inflation.
- The Institute for Supply Management reported Thursday that the manufacturing PMI dipped to 54.5 from 54.6 in August, though the index remained above 50, indicating continued growth.
- Strong domestic demand and infrastructure buildouts supporting manufacturing as businesses rebuild inventories to meet robust demand. The sector accounts for about 9.4% of the economy.
- The gauge of prices paid for inputs jumped to 77.9 from 71.1, reflecting inflationary pressures. Economists expect inflation to remain above the Federal Reserve's 2% target for some time.
- Manufacturers hired more workers, with a factory employment measure rising to 52.7 from 51.2. Overall nonfarm payrolls are forecast to increase by 90,000 following August's surge.
- Economists caution that segments unrelated to the AI buildout could struggle amid headwinds from the US-Israeli war with Iran, which has raised energy prices and strained supply chains.
18 Articles
18 Articles
In September, the ISM manufacturing purchasing managers' index fell slightly to 54.5 from 54.6, missing expectations of 55. The US manufacturing sector is still in explosive shape, with new orders and employment both rising. However, the price component jumped to 77.9 from 71.1, indicating rising inflationary pressures. Experts say the data clearly points to further interest rate hikes.
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Although the ISM data from the US manufacturing sector reported today was slightly weaker than expected,...
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