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Friday, 2 October 2026
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US ISM Manufacturing Index for September Falls Short of Expectations

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Written with artificial intelligence.

US ISM Manufacturing Index for September Falls Short of Expectations

The ISM manufacturing index for September registered at 54.5, below the expected 55.0 and down from August's 54.6. Key components showed improvement in new orders and employment, but the prices paid index surged to its highest level since May, raising concerns over inflation.

Key ISM Manufacturing Data

The Institute for Supply Management (ISM) released its manufacturing index for September, showing a reading of 54.5, which is below the anticipated 55.0 and slightly lower than August's 54.6.

Component Breakdown

  • New Orders: Improved to 55.3 from 53.7 in August.
  • Employment: Increased to 52.7 from 51.2.
  • Prices Paid: Rose sharply to 77.9, exceeding expectations of 72.3 and marking the highest level since May.

This spike in prices paid has prompted a notable market response, with US 30-year Treasury yields rising by 5.2 basis points to 5.69%, impacting equity markets negatively.

Industry Insights

The ISM report included comments from various sectors, highlighting challenges such as:

  • Geopolitical uncertainties and supply chain issues affecting costs.
  • Persistent pricing pressures and the impact of tariffs, particularly with Canada.
  • A shortage of workers and raw materials, limiting production capabilities in key industries.
US ISM Manufacturing Index for September Falls Short of Expectations
Image generated with AI

The ISM manufacturing PMI, a key economic indicator, is compiled from responses of purchasing and supply executives and provides insights into economic activity. A reading above 50 indicates expansion, while below indicates contraction. The report is released monthly, offering a snapshot of manufacturing health in the US economy.

This article is for information only and is not investment advice.

ManufacturingIsmInflationPrices paidUs economy
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