US Factory Growth at 4-Month High

The IHS Markit US Manufacturing PMI rose to 55.6 in September of 2018 from 54.7 in August, beating market expectations of 55. The reading pointed to the strongest expansion in manufacturing in four months, mainly boosted by faster increases in output and new orders, preliminary figures showed.

Stronger rates of output and new order growth were the main factors boosting the PMI in September. Stock building also had a positive contribution to the headline index, with pre-production inventories rising at the fastest pace since December 2016.

Input buying increased at the strongest rate for four years in September. A number of 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 cautious about the year-ahead growth outlook, with business sentiment moderating to its lowest since March 2017. Moreover, staffing numbers were expanded at the weakest pace for 13 months in September.

US Factory Growth at 4-Month High

Markit | Joana Taborda |
9/21/2018 1:51:25 PM