Federal Reserve district manufacturing surveys likely to be mixed

Canvasses of US local firms conducted by the Federal Reserve Banks of New York and Philadelphia will provide early glimpses at manufacturing activity in September and will allow to do some spadework on the projection for the Institute for Supply Management's (ISM) national survey. 

"The headline readings are expected to be mixed in this week's reports. The net percentage of firms noting a pickup in business in the Empire State Manufacturing Survey likely remained on a saw-toothed path during the reference period, rebounding sharply by 18.4 percentage points to 3.5% from the 6½-year low posted in August", says Societe Generale. 

The general business conditions diffusion index in the Philadelphia Bus iness Outlook Survey, meanwhile, probably shed 5.7 percentage points to 2.6%, but remained in expansionary territory for a 20th consecutive month. Taken together, these would be consistent with the ISM Purchasing Managers' Index moving modestly higher to 51.7 in September.