Published 3 hours ago • loading... • Updated 60 minutes ago
US manufacturing steady in September, input prices increase
The new orders index rose to 55.3, but the prices-paid gauge jumped to 77.9, signaling persistent factory inflation.
The Institute for Supply Management reported Thursday that the manufacturing PMI dipped to 54.5 from 54.6 in August, though the index has held above the 50 threshold this year, indicating continued growth.
An infrastructure buildout is supporting manufacturing alongside businesses rebuilding inventories to meet robust domestic demand, helping factory employment rise to 52.7 from 51.2.
Prices paid for inputs jumped to 77.9 from 71.1 in September, with Economists noting inflation could "remain above the Federal Reserve's 2% target for some time."
Concerns persist that segments outside the AI spending boom could struggle as the US-Israeli war with Iran has snarled supply chains and raised energy prices, while Diesel prices sit at record highs.
The government will publish the employment report on Friday, where Economists forecast nonfarm payrolls increased by 90,000 and the unemployment rate held steady at 4.1%.
(New York = Yonhap News) Correspondent Lim Soo-jung = U.S. manufacturing activity continued its expansion for the ninth consecutive month in September, but the pace of growth slowed slightly.
In September, the ISM manufacturing purchasing managers' index fell slightly to 54.5 from 54.6, missing expectations of 55. The US manufacturing sector is still in explosive shape, with new orders and employment both rising. However, the price component jumped to 77.9 from 71.1, indicating rising inflationary pressures. Experts say the data clearly points to further interest rate hikes.