U.S. manufacturing sector’s business conditions rebound strongly in September

U.S. manufacturing sector’s business conditions record strong rebound in September. The seasonally adjusted IHS Markit Flash manufacturing PMI rose to 55.6 from August’s 54.7, the highest since May 2018. The September PMI index was mainly stimulated by stronger rates of output and new order growth. Stock building also contributed positively to the headline figure, with pre-production inventories rising at the most rapid rate since December 2016.

Input buying rose in September at the strongest pace in four years. Several manufacturers commented on forward purchasing in response to global trade tensions and longer delivery times from domestic suppliers. There were signs that manufacturers have become more prudent regarding the year-ahead growth outlook, with business sentiment easing to its lowest since March 2017. Furthermore, staffing numbers grew at the softest rate in 13 months.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -60.1941. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex