U.S. manufacturing PMI index rebounded a bit in September. On a seasonally adjusted basis, the flash manufacturing PMI index rose to 51 in September from 50.3 in August and the highest since April. Today’s reading hints at a modest overall rebound in manufacturing sector business conditions.
Paces of output and new order growth came in stronger, driving the rise in the headline PMI index, along with a slight rise in staffing levels. Nevertheless, export order books continued to soften, as hinted by a fall in new work from abroad for the fourth time in the last five months.
Manufacturers continued to be cautious regarding their input buying strategies in September, as signalled by a further reduction in purchasing activity and lower pre-production inventory holdings. Stocks of finished goods were also depleted, which continued the downward trend seen since May.
In the meantime, latest data indicated towards only modest rises in both input costs and factory gate charges in September, although in each case the pace of inflation accelerated since the previous month.
