US manufacturing steady in September, input prices increase
SPY•The ISM manufacturing PMI dipped to 54.5 in September from 54.6 in August, while its input prices measure jumped to 77.9 from 71.1. New orders and factory employment measures also increased.
1. Activity little changed
The Institute for Supply Management said its manufacturing PMI edged down to 54.5 in September from 54.6 in August, below economists’ forecast of 55.0. The index remained above 50, indicating growth in manufacturing, which accounts for about 9.4% of the economy.
2. Orders and prices rise
The new orders measure increased to 55.3 from 53.7, and order backlogs rose. The supplier deliveries index eased to 59.0 from 59.3; readings above 50 indicate slower deliveries. The measure of prices paid for inputs jumped to 77.9 from 71.1, consistent with economists’ expectations that inflation could remain above the Federal Reserve’s 2% target for some time.
3. Factory employment expands
The factory employment measure rose to 52.7 from 51.2, suggesting a further increase in manufacturing payrolls in September. Economists expected factory employment to rise by 10,000 after increasing by 16,000 in August; overall nonfarm payrolls were forecast to rise by 90,000.
