US ISM Manufacturing PMI inched up from 48.7 to 49.1 in September, just shy of expectations at 49.2, marking the seventh straight month in contraction. The modest uptick reflected stronger production, which rose from 47.8 to 51.0, and a slight improvement in employment from 43.8 to 45.3.
However, the details painted a mixed picture. New orders slipped back into contraction at 48.9 (down from 5.14) after briefly turning positive. Prices paid eased from 63.7 to 61.9, suggesting input cost pressures are cooling.
ISM noted that the gains in production were offset by declines in new orders and inventories, leaving the overall PMI improvement “negligible.”
According to ISM, the September reading historically corresponds to a 1.9% annualized increase in US GDP. That suggests the factory sector remains a drag but not a collapse.
