PMI Falls as New Orders Drop
S&P Flash Manufacturing PMI: The S&P Global Flash U.S. Manufacturing PMI dropped from 47.9 in August to 47, tumbling for the third consecutive month and at the steepest rate since June 2023. The largest negative contribution to the PMI came from new orders, which fell at the fastest rate since December 2022.
Manufacturing output dropped modestly for the second consecutive month but fell at a slower rate than August. Delivery times shortened to a degree not witnessed since February, which indicates spare supply chain capacity amid weakened demand. Factory production was also a drag on PMI, albeit less so than in August. Excluding the pandemic, the decline in factory jobs was the steepest since January 2010 as more firms reported the need to reduce operating capacity due to weak sales. Manufacturing input cost growth cooled to a six-month low thanks to lower energy prices and the spare supply chain capacity. Inventories were unchanged.