ISM reported that the September Manufacturing Purchasing Managers Index dropped 1.9 percentage points to 50.9%. However, as any number above 50% indicates expansion, overall economic activity in the manufacturing sector continued to grow for the 28th consecutive month.
Here is the breakdown of the September PMI:
- New Orders Index: 47.1%, a 4.2 percentage point decrease month-over-month
- Production Index: 50.6%, a 0.2 percentage point increase month-over-month
- Prices Index: 51.7%, a 0.8 percentage point decrease month-over-month
- Backlog of Orders Index: 50.9%, a 2.1 percentage point decrease month-over-month
- Employment Index: 48.7%, a 5.5 percentage point decrease month-over-month
- Supplier Deliveries Index: 52.4%, a 2.7 percentage point decrease month-over-month
- Inventories Index: 55.5%, a 2.4 percentage point increase month-over-month
- New Export Orders Index: 47.8%, a 1.6 percentage point decrease month-over-month
- Imports Index: 52.6%, a 0.1 percentage point increase month-over-month
“The U.S. manufacturing sector continues to expand, but at the lowest rate since the pandemic recovery began. Following four straight months of panelists’ companies reporting softening new orders rates, the September index reading reflects companies adjusting to potential future lower demand,” Timothy R. Fiore, ISM Chairman, said.
September saw growth in nine manufacturing industries, including:
- Nonmetallic Mineral Products
- Plastics & Rubber Products
- Miscellaneous Manufacturing
- Apparel, Leather & Allied Products
- Transportation Equipment
- Food, Beverage & Tobacco Products
- Computer & Electronic Products
- Electrical Equipment, Appliances & Components
Furniture & Related Products, Textile Mills, Wood Products, Printing & Related Support Activities, Paper Products, Chemical Products and Fabricated Metal Products all reported a decrease in September compared to August.