US manufacturing sector contracts

Economic activity in the US manufacturing sector contracted in September for the 11th consecutive month following a 28-month period of growth, says the latest ‘Manufacturing ISM Report On Business’ from the Institute for Supply Management. 

The Manufacturing PMI registered 49 percent in September, 1.4 percentage points higher than the 47.6 percent recorded in August. The overall economy expanded weakly after nine months of contraction following a 30-month period of expansion, and the index yielded the following results:  

• the New Orders Index remained in contraction territory at 49.2 percent, 2.4 percentage points higher than the figure of 46.8 percent recorded in August 

• the Production Index reading of 52.5 percent is a 2.5-percentage point increase compared to August's figure of 50 percent 

• the Prices Index registered 43.8 percent, down 4.6 percentage points compared to the reading of 48.4 percent in August 

• the Backlog of Orders Index registered 42.4 percent, 1.7 percentage points lower than the August reading of 44.1 percent 

• the Employment Index registered 51.2 percent, up 2.7 percentage points from the 48.5 percent reported in August 

• the Supplier Deliveries Index figure of 46.4 percent is 2.2 percentage points lower than the 48.6 percent recorded in August 

• the Inventories Index increased by 1.8 percentage points to 45.8 percent; the August reading was 44 percent 

• the New Export Orders Index reading of 47.4 percent is 0.9 percentage point higher than August's figure of 46.5 percent 

• the Imports Index remained in contraction territory, registering 48.2 percent, 0.2 percentage point higher than the 48 percent reported in August 

Of the six biggest manufacturing industries, two — food, beverage, and tobacco products and petroleum and coal products — registered growth in September.