Composite growth in the manufacturing sector is slowing this month according to the PMI flash index for mid-September which is at 52.8 vs 53.1 for the final August reading and vs 53.9 for the mid-month August reading. Especially soft is the leading component of the composite, that is new orders which is at 52.7 vs 55.7 in August and 56.5 at mid-month August. This is the lowest rate of order growth in Markit's sample since April.
Other readings on orders are mixed with new export orders falling into contraction, to 49.1 and down nearly 3 points from August for the lowest reading since June. But on the plus side is total backlog which moved back into the growth column to 50.6 for a 1 point gain.
A strength in today's report is output which is up nearly 3 points to 55.3 for the best rate of monthly growth since March. This reading hints at a September gain for the manufacturing component of the industrial production report which surged in August.
Other readings include slowing in employment growth and steady and mild pressure for both input and output prices. Inventory data show easing rates of destocking.
There are more negative than positive indications in today's report as the slowing in new orders points to slowing for future output, though current output looks very solid. Next manufacturing data on the Econoday calendar will be tomorrow with the Richmond Fed report for September followed on Wednesday by the durable goods report for August.
Source:Bloomberg
Other readings on orders are mixed with new export orders falling into contraction, to 49.1 and down nearly 3 points from August for the lowest reading since June. But on the plus side is total backlog which moved back into the growth column to 50.6 for a 1 point gain.
A strength in today's report is output which is up nearly 3 points to 55.3 for the best rate of monthly growth since March. This reading hints at a September gain for the manufacturing component of the industrial production report which surged in August.
Other readings include slowing in employment growth and steady and mild pressure for both input and output prices. Inventory data show easing rates of destocking.
There are more negative than positive indications in today's report as the slowing in new orders points to slowing for future output, though current output looks very solid. Next manufacturing data on the Econoday calendar will be tomorrow with the Richmond Fed report for September followed on Wednesday by the durable goods report for August.
Source:Bloomberg
