Commentary Directory
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- A Breather for the Eurozone as Inflation Hits Two-Year Low
- Germany's September CPI Report: A Clearer Picture of Inflation Trends
- US Manufacturing Demonstrates Resilience Amidst Volatility in August
- The ECB Prepares to Address Excess Liquidity Through the MRR
- Bank of Japan is Too Optimistic on Inflation
- The Bank of England Pauses in a Near Split Decision
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- US Retail Sales Grow at Fastest Monthly Rate Since the Start of the Year
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- Energy Prices Rise but the Core Disinflationary Trend is Maintained in September
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- A Wacky September Jobs Report Shows Strong Labor Market
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- Thoughts on GME and This Week in the Stock Market
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US ISM Manufacturing PMI: September 2023
Jacob Hess
October 02, 2023
- EconoBrief
- US
US ISM Manufacturing PMI
10/2/2023 (September 2023)
49.0 (+1.4 pts)
Above Expectations
Highlights
| New Orders | 49.2 (+2.4 pts) |
| Employment | 51.2 (+2.7 pts) |
| Prices | 43.8 (-4.6 pts) |
The U.S. manufacturing sector contracted for the 11th straight month in September, according to the latest Manufacturing ISM PMI. However, the rate of contraction slowed, with the Manufacturing PMI registering at 49%, up from 47.6% in August. While new orders and production showed marginal improvement, the prices and backlog of orders indices declined. Employment in the sector rose, and supplier deliveries sped up for the 12th consecutive month. Despite the overall contraction, two major industries—Food, Beverage & Tobacco Products, and Petroleum & Coal Products—saw growth. The report suggests that while demand remains soft, there are signs of improvement as companies prepare for Q4 and the end of the fiscal year.
Manufacturing activity remained subdued in September due to weak domestic and foreign demand. Inventories and deliveries continued to shrink, indicating lower contributions to GDP. The sector's fragility was highlighted by a sharp drop in the Prices index to 43.8. Despite these challenges, the contraction in manufacturing was less severe than anticipated, and employment in the sector showed signs of improvement.
© MTS Insights 2023