United States: ISM manufacturing index falls again in September, barely holds in expansionary territory
October 1, 2015
In September, the ISM manufacturing index moderated from the 51.1% recorded in August to 50.2%, which marked the lowest reading in over two years. The result undershot market expectations of 50.5%. Moreover, the loss puts the index dangerously close to the 50.0% threshold that distinguishes between expansion and contraction in the manufacturing sector. September’s result suggests that the manufacturing sector is losing steam.
The index was dragged down by mainly weaker readings in the production and new orders categories, which hit multi-year lows. Employment and inventory levels were down moderately, whereas supplier delivery times were unchanged in September.
Author: Carl Kelly, Economist