US ISM Manufacturing PMI was unchanged at 47.2 in September, falling short of expectations of 47.8. This marks the sixth consecutive month of contraction in the manufacturing sector, which has now shrunk in 22 of the past 23 months.
Among the key components, new orders showed a modest improvement, rising from 44.6 to 46.1, while production saw a notable jump from 44.8 to 49.8, approaching the neutral 50 level.
However, employment declined sharply, dropping from 46.0 to 43.9, with the past three months reflecting some of the weakest employment figures since July 2020. Price pressures also eased significantly, with the prices index falling from 54.0 to 48.3.
Historically, the relationship between the ISM Manufacturing PMI and overall economic activity suggests that the September reading of 47.2 corresponds to a modest 1.3% annualized increase in real GDP.
