The US manufacturing sector showed improvement in September, according to the Institute for Supply Management. Its Manufacturing PMI (purchasing managers composite index) posted a reading of 49.0% in September. While that still indicates a contraction in the US manufacturing sector, it’s the measure’s highest level since November 2022.
“The US manufacturing sector continued its contraction trend but at a slower rate, recording its best performance since November 2022, when the PMI also registered 49%,” Timothy Fiore, chair of the ISM’s Manufacturing Business Survey Committee, said in a press release. “Companies are still managing outputs appropriately as order softness continues, but the month-over-month PMI improvement in September is a clear positive.”
The measure must reach a level of 50% or higher to indicate growth.
“This is the 11th month of contraction, but the third month of positive change,” Fiore said.
Meanwhile, the employment portion of the composite index rose to a reading of 51.2% in September from 48.5% in August, indicating expansion in employment.
Headcount reductions slowed.
“Labor management sentiment at Business Survey Committee respondents’ companies continues to indicate a slowdown in hiring,” Fiore said. “This is reflected by the use of attrition, freezes and layoffs to address head counts, but such measures occurred at a lesser rate compared to August.”
The ISM’s Manufacturing PMI report is based on data from purchasing and supply executives across the US.