Commentary Directory

US S&P Manufacturing PMI: September 2023

Jacob Hess
October 02, 2023

US S&P Manufacturing PMI

10/2/2023 (September 2023)

49.8 (+1.9 pts)

Above Expectations

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In September, U.S. manufacturers saw a slight improvement in operating conditions, according to S&P Global's latest PMI survey. The PMI index rose to 49.8, up from 47.9 in August, signaling a near-stabilization in the manufacturing sector. This uptick was driven by a marginal increase in output and greater hiring activity, despite a continued decline in new orders. Inflationary pressures were present but remained historically muted. Firms are optimistic about future output, with confidence levels hitting their highest since April 2022. However, rising input costs, particularly due to increased oil prices, are a concern for inflation moving forward.

From S&P Global

Despite a challenging 2023 and tightening financial conditions, manufacturing is showing signs of recovery. Firms continue to hire, suggesting positive growth in September payrolls. However, there's a downside as selling price inflation has accelerated, marking its fastest pace in the last five months. Overall, while manufacturing is still not in great shape, it's performing better than expected given the current circumstances.