US manufacturing continued expanding in September, but input-price pressures intensified, the Institute for Supply Management reported on October 1. Its Manufacturing PMI edged down to 54.5 from 54.6 in August, remaining above the 50-point expansion threshold.
The Prices Index jumped to 77.9 from 71.1. This is a survey diffusion index showing the breadth and direction of price changes; it does not mean manufacturers’ costs rose by 77.9%.
New orders strengthened to 55.3 from 53.7, while employment rose to 52.7 from 51.2. Production continued growing, although its index eased to 56.7 from 58.3, showing that the underlying components did not move uniformly.
ISM identified steel and aluminum costs, tariffs and petroleum-based products as sources of pricing pressure. Higher input prices were reported by 58.6% of respondents, compared with 46.2% in August.
The survey follows claims data showing fewer new unemployment applications. Together, the releases put continued activity and cost pressures in focus, while leaving the next interest-rate decision dependent on a broader set of economic evidence.
