US Manufacturing Growth Slows in September as ISM Index Dips

WASHINGTON (dpa-AFX) - Manufacturing activity in the United States expanded for the ninth consecutive month in September, but the pace of growth slowed, according to a report released Thursday by the Institute for Supply Management (ISM). The ISM Manufacturing Purchasing Managers' Index (PMI) edged lower to 55.4 in September from 56.0 in August, remaining above the 50 threshold that separates expansion from contraction.

The reading, while still indicating solid growth, suggests that momentum in the manufacturing sector is moderating. The ISM report is closely watched as a key gauge of economic health, and the ninth straight month of expansion underscores the resilience of US manufacturing despite ongoing supply chain challenges and rising input costs. Economists had expected a reading of around 55.5, according to consensus estimates.

The slight decline in the index may reflect easing demand or persistent logistical bottlenecks. Market participants will be looking for further details in the report, including subindexes for new orders, production, and employment, to gauge the sector's trajectory. The data comes ahead of the closely watched nonfarm payrolls report on Friday, which could influence Federal Reserve policy expectations. Global markets showed little immediate reaction, but analysts noted that a sustained slowdown in manufacturing could weigh on broader economic growth in the coming months.