U.S. Manufacturing Sector Grew Slightly in September as Orders, Output Rose -- S&P Global
By Xavier Fontdegloria
Activity in the U.S. manufacturing sector expanded slightly in
September for a second consecutive month amid muted demand for
goods and easing inflation pressures, data from a purchasing
managers survey showed Monday.
The S&P Global U.S. manufacturing PMI rose to 52.0 in
September from 51.5 in August, virtually above the preliminary
reading of 51.8. Economists polled by The Wall Street Journal
expected the index to be unchanged from the flash estimate.
The indicator signals factory activity grew slightly in
September, similar to levels registered in August, as the index
came in close to the 50.0 threshold that separates expansion from
In September, both production and new orders rose, albeit only
marginally, the report said.
"With U.S. manufacturers reporting a return to growth of order
books for the first time in four months, as well as improved job
gains, the September survey brings welcome news that business
conditions are starting to improve again," said Chris Williamson,
chief business economist at S&P Global.
However, the weakness of the data in recent months still point
to manufacturing acting as a drag on the economy in the third
quarter, he said.
New orders rose for the first time in four months as companies
reported an improvement in demand conditions. Producers of both
consumer goods and business equipment reported improved sales to
the domestic market, while sales abroad declined due to slowing
global growth and the dollar's strength, S&P Global said.
The survey also pointed to moderating inflation pressures. Input
cost inflation was elevated but eased to the softest pace since
January 2021 as prices for materials such as steel, plastics and
lumber reportedly fell.
"With supply-chain delays also easing substantially again in
September and shipping costs falling, upwards pressure on firms'
costs has moderated sharply, which will feed through to lower goods
prices to consumers," Mr. Williamson said.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
October 03, 2022 10:16 ET (14:16 GMT)
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