ISM manufacturing index dropped to 59.8 in September, down from 61.3 and missed expectation of 60.0. Price paid index dropped to 66.9, down from 72.1 and missed expectation of 0.8. Employment component, though rose 0.3 to 58.8.
ISM noted in the release that:
- Demand remains strong, consumption improved, inputs improved
- But continued supply chain inefficiencies led to an increased consumption of inventory and a slight expansion of imports,
- Export orders expanded, but four major industries are no longer contributing
- Price pressure continues, but the index softened for the fourth straight month
- Respondents are again overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations,
