US manufacturing expanded for a ninth month in September, although its purchasing managers’ index slipped to 54.5. The input-price index climbed to 77.9 as firms reported higher steel, aluminum and petroleum-product prices. New orders and employment strengthened, while production growth eased and raw-material inventories moved back into contraction. The survey measures the breadth of monthly change, rather than percentage increases in prices or output.
The US manufacturing purchasing managers’ index reached 54.5 in September, down from 54.6 in August. The Institute for Supply Management, the US association of supply managers that runs the monthly survey, recorded a ninth consecutive month of expansion. The index summarizes how widely businesses report improvement or deterioration. Its reading describes the direction and breadth of change rather than a percentage increase in factory output.[1], [2]
The prices index climbed from 71.1 to 77.9, extending raw-material price increases to a 24th month. Higher prices were reported by 58.6 percent of respondents, against 46.2 percent in August. Firms cited steel and aluminum, import tariffs and petroleum-based products affected by the Middle East conflict. Supplier deliveries remained slower, with an index of 59. Electrical components, memory products, steel and tungsten products were among the shortages businesses reported.[1]
New orders rose 1.6 points to 55.3, while the production index fell 1.6 points to 56.7. Employment increased to 52.7 and order backlogs reached 56.4. Raw material inventories fell to 48.6, entering contraction, while customers’ inventories stood at 41.6 and were considered too low. Five of the six largest manufacturing industries expanded. 12 industries reported growth overall, with printing and textile mills among those reporting contraction.[1]
