US manufacturing contracts for six months straight
Make us a preferred source
Make us a preferred source on Google
The news: US manufacturing activity remained weak in September, marking a sixth consecutive month in contraction territory, with the ISM manufacturing PMI holding steady at 47.2.
The numbers: A level below 50 in the Institute for Supply Management index indicates contraction. New orders rose to 46.1 from 44.6, and prices paid by manufacturers fell to their lowest in nine months at 48.3.
Factory production and durable goods orders remained relatively steady.
Employment in the sector declined, with the manufacturing employment index dropping to 43.9 from 46.0, the fourth straight month in contraction.
Port strikes and disruptions from a recent hurricane are posing risks, while limited capital spending and election uncertainty continue to weigh on the sector.
Responses to the PMI survey showed many industries expect the Federal Reserve’s rate cuts and the November election will bring a more stable trading environment in 2025.
The context: The Boeing strike, which started in mid-September, is worsening the slowdown in the aerospace and transportation equipment sector. While October's survey results will also likely be impacted by production disruptions from hurricane Helene and the port strikes on the east and central coasts.
Five manufacturing industries, including petroleum & coal products and food, beverage & tobacco products, grew in September, while 13 sectors, led by printing, plastics, and wood products, reported contraction.
What they said: “Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy — which the U.S. Federal Reserve addressed by the time of this report — and election uncertainty,” ISM chair Timothy Fiore said.
