US manufacturing sector expansion period continued in September
Although the US manufacturing indicator declined slightly, the sector managed to stay in growth territory for the ninth consecutive month.
Although the ISM manufacturing indicator experienced a slight drop in September, manufacturing activity continued to remain in expansion territory for the ninth consecutive month.
Manufacturing Activity in September
The ISM manufacturing indicator recorded a 0.1-point drop in September, declining to 54.5. Despite this, manufacturing activity continues to maintain its course in expansion territory for nine consecutive months.
Demand and Employment Growth
While September data points to a healthy flow of demand, an increase was also recorded in the new orders indicator. While production grew at a slower pace, firms are responding to increased order volumes by hiring new employees.
Costs and Supply Chain
Manufacturers are contending with rising costs and supply chain bottlenecks on one hand. An indicator for raw material prices rose to its highest level since May.
Sectoral Distribution and Support
The manufacturing sector is growing with the support of resilient consumer spending, strong commercial investments, and public spending oriented towards defense. In September, twelve manufacturing industries registered growth, while printing and textiles reported contraction.