Input Stories

Manufacturing activity in the U.S. declined for the second consecutive month in September, while overall business activity held steady (Reuters, subscription).

What’s going on: “The S&P Global … survey’s flash manufacturing PMI dropped to a 15-month low of 47.0 from 47.9 in August. Economists polled by Reuters had forecast the index for the sector, which accounts for 10.3% of the economy, rising to 48.5.”

• The biggest contributor to the flash manufacturing PMI’s decline was a dip in new orders, which “fell at the fastest rate since December 2022” (S&P Global).

The overall economy: The survey’s flash U.S. Composite PMI Output Index—which covers both the services and manufacturing sectors—barely budged from August’s final reading of 54.6, coming in at 54.4 in September.

What it means: “There are some warning lights flashing, notably in terms of the dependence on the service sector for growth, as manufacturing remained in decline, and the worrying drop in business confidence,” S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

• “A reacceleration of inflation … suggest[s] the Fed cannot totally shift its focus away from its inflation target as it seeks to sustain the economic upturn.”