US Manufacturing Shows Stability Amid Economic Changes
US manufacturing held steady at weaker levels in September, with the Institute for Supply Management (ISM) reporting a manufacturing PMI unchanged at 47.2. This level signals contraction in the manufacturing sector, although new orders improved and prices paid for inputs decreased, indicating potential future growth. The PMI staying below 50 for six consecutive months highlights ongoing challenges, yet the survey's forward-looking new orders sub-index increased to 46.1 from 44.6 in August. Furthermore, the prices paid measure fell to 48.3, marking the lowest level seen since December 2023.
Economic Indicators
- Manufacturing PMI: 47.2
- Prices Paid Measure: 48.3
- New Orders Sub-Index: 46.1
- Production Sub-Index: 49.8
Impact of Federal Reserve Decisions
Following rate cuts by the Federal Reserve, expectations for a rebound in manufacturing activity grow stronger. The central bank's anticipated further rate cuts in November and December may enhance economic conditions for this sector.
Employment Concerns
- Manufacturing employment measure dropped to 43.9.
- Experts forecast a decrease in manufacturing payrolls by 5,000 jobs in September.
- Ongoing layoffs and hiring freezes reported.
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.