Financial News: U.S. Manufacturing Index Indicates Continued Contraction I

U.S. Manufacturing Index Indicates Continued Contraction In September

10/01/2024 - 10:19:00 (RTTNews)

(RTTNews) - Manufacturing activity in the U.S. continued to contract in the month of September, the Institute for Supply Management revealed in a report released on Tuesday.

The ISM said its manufacturing PMI came in at 47.2 in September, unchanged from August, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 47.5.

Manufacturing activity contracted for the sixth consecutive month and the 22nd time in the last 23 months.

"U.S. manufacturing activity contracted again in September, and at the same rate compared to last month," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. "Demand continues to be weak, output declined, and inputs stayed accommodative."

The ISM said the new orders index rose to 46.1 in September from 44.6 in August but remained in contraction territory for the sixth consecutive month

"Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy - which the U.S. Federal Reserve addressed by the time of this report - and election uncertainty," said Fiore.

The report also said the production index jumped to 49.8 in September from 44.8 in August, with Fiore noting production execution stabilized during the month.

Meanwhile, the employment index fell to 43.9 in September from 46.0 in August, suggesting employment in the manufacturing sector shrunk at a faster rate.

The prices index also slumped to 48.3 in September from 54.0 in August, indicating raw materials prices decreased after eight straight months of increases.

On Thursday, the ISM is scheduled to release a separate report on service sector activity in the month of September. The ISM's services PMI is expected to inch up to 51.6 in September from 51.5 in August, with a reading above 50 indicating growth.

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