US Manufacturing PMI Data Showed an Increase in September
The US manufacturing PMI data for September reached 55.9, recording the highest level since May 2022.
The final US manufacturing PMI data for September, released by S&P Global, was confirmed at 55.9. Increasing by 2 points compared to August, this rate pointed to the highest level since May 2022.
Expansion Cycle in the Manufacturing Sector
The final US manufacturing PMI data for September, released by S&P Global, was confirmed at 55.9 and revealed that growth in the sector continues.
Although the data was revised downward from the preliminary estimate of 57.0, it recorded a 2-point increase compared to August's level of 53.9.
The Role of Production and New Orders
The main drivers of the recovery in September were production and new orders.
The increase in demand from the domestic market pulled the headline index upward.
Inflation Pressure on the Cost Front
Despite the acceleration in expansion, the ongoing increase in input prices indicated that inflation risks remain alive.
Logistics costs and wage pressures continue to impact corporate margins.
External Demand and Export Status
Weak external demand played a role in failing to meet the market expectation of 57.0.
The slowdown in export orders showed that the impact of global trade tensions persists.
The Fed's Monetary Policy Outlook
The data remaining above the 50 threshold weakened the risk of recession.
Markets expect the Fed to maintain its cautious and data-dependent approach in its interest rate cut cycle.