S&P U.S. Manufacturing PMI reaches 52-month high in September

The S&P Global Flash U.S. Manufacturing PMI rose from 53.9 to 57.0 in September, a 52-month high. Factory production accelerated at its quickest pace since April 2022, while new order growth hit a more than four-year high. Meanwhile, manufacturing employment rose at its fastest rate since February 2021.

Inventories increased in September, while supplier delivery times lengthened to the greatest degree since July 2022 as supplier delays became more widespread. Input and selling prices remained elevated but below the peaks seen during the initial months of the Iran conflict earlier this year. Overall, price pressures worsened in September, led by higher fuel and transportation costs, alongside some mentions of wage pressures.

Overall business activity increased in September, moving up from 56.0 to 58.4, a 62-month high. Service sector growth also improved, rising to a 59-month high. Demand for services continued to drive growth alongside renewed gains in manufacturing activity, while employment rose at its fastest pace in over four years.

Meanwhile, optimism about future conditions stayed the same in September as manufacturers remained more upbeat than the service sector. Furthermore, factory confidence returned to its long-run average supported by strong demand and economic resilience even as cost concerns persisted.