US Manufacturing PMI Stays at 47.2 with Declining Prices Paid in September
US Manufacturing PMI Shows Stability
US manufacturing held steady in September with a PMI of 47.2, according to the Institute for Supply Management (ISM). This reading, remaining below 50, indicates ongoing contraction in the sector, which is crucial to the overall economy.
New Orders and Price Trends
The component for new orders improved to 46.1 from 44.6 in August, while the prices paid measure fell to 48.3, its lowest since December 2023. The recent cuts in interest rates by the Federal Reserve may contribute to a recovery in manufacturing activities in the coming months.
Labor Market Implications
Despite the stability in the PMI, employment in manufacturing continues to contract, with the employment measure dropping to 43.9. This trend raises concerns about future payrolls in the sector.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.