The U.S. manufacturing sector expanded in September, but at a slower pace than in August, and price pressures jumped, according to data released Friday by the Institute for Supply Management.Overall, it was a positive reading. The only thing I will add is to look at the chart below at the backlog section (in red), which shows that backlog orders have fallen below 50, indicating contraction. This is something to keep your eye on to gauge future manufacturing demand. New orders were a little weak as well at 51.1, barely showing expansion.
The ISM's manufacturing purchasing managers' index fell to 54.4 from 56.3 in August.
Readings above 50 indicate expanding activity, and September was the 14th consecutive month of growth, said the ISM.
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