US manufacturing activity at 5-month high in September

Tuesday, 01. October 2019 15:45

Closely-watched manufacturing data for the United States revealed that the sector improved marginally in September. The seasonally adjusted final US Manufacturing Purchasing Managers’ Index (PMI) moved up to 51.1 last month, a five-month high and up from the 50.3 recorded in August, IHS Markit said on Tuesday. The uptick in activity was mainly due to production rising.

However, the manufacturing sector posted its worst quarter since 2009. "News of the PMI hitting a five-month high brings a sigh of relief, but manufacturing is not out of the woods yet," Chief Business Economist at IHS Markit Chris Williamson commented on the data.

"It’s also far from clear that the trend will improve in the fourth quarter. Inflows of new work remain worryingly subdued, to the extent that current production growth is having to be supported by firms increasingly eating into order book backlogs," he explained, adding that the current picture is in stark contrast to the beginning of the year when companies struggled to keep up with demand.

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