September PMI signals further improvement in America's manufacturing
Staff Writer |
September survey data signalled a further improvement in operating conditions across the US manufacturing sector.
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The overall upturn was supported by further growth in output and new orders.
Strong client demand was a key factor behind the fastest rise in staffing levels so far this year.
Business confidence also remained strong, despite slipping since August.
On the price front, cost pressures intensified, with input prices increasing at the quickest pace since December 2012.
Output charges meanwhile rose at the steepest rate for five months.
The seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) registered 53.1 in September, up slightly on the flash reading of 53.0 and rising from 52.8 in August.
The upturn signalled a slight pick up in growth momentum and a strong improvement in overall operating conditions across the sector.
Production growth continued to expand at the end of the third quarter, though the rate of growth was unchanged from August’s 14-month low.
Nonetheless, a number of panellists suggested the rise in production was due to improved market conditions.
New orders received continued to increase in September.
Anecdotal evidence linked the rise to strong client demand and greater marketing activity.
That said, the pace of expansion of new orders eased for the second month running.
The overall upturn was supported by higher export sales, which rose marginally.
Inflationary pressures intensified as input price inflation accelerated sharply.
Moreover, the rate of increase was the fastest since December 2012.
Panellists commented that raw material prices - notably for metals - were driven up after the recent hurricanes.
Severe weather conditions also contributed to a further deterioration in vendor performance, with lead-times lengthening to the greatest extent since February 2015.
Firms generally passed on greater cost burdens to clients through higher charges.
Although the rate of output price inflation reached a five-month high, it was moderate overall. ■