Ovunc Kutlu
02 October 2023•Update: 02 October 2023
ISTANBUL
The US manufacturing sector showed a slower pace of contraction in September due to a renewed increase in production, according to a report by S&P Global on Monday.
The sector saw conditions declining at a much slower pace, although domestic and external demand remained subdued, it added.
The manufacturing purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, added two points to reach 49.9 in September, up from 47.9 in August, according to the final results by the financial services company.
That level also came in higher than the flash estimate of 48.9 released on Sept. 22.
A reading below 50 represents contraction, while above 50 indicates expansion in the sector.
"September saw a welcome near-stabilization of business conditions in manufacturing, but a further increase in price pressures is a concern on the inflation front," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in the report.
"Manufacturers’ expectations of future output have jumped to their highest for nearly one and a half years, supply conditions continue to improve, and the rate of order book decline has moderated considerably in recent months, in part due to fewer producers and customers reporting deliberate cost-focused inventory reduction policies," he added.
