- Prior was 54.5
- Manufacturing 52.0 vs 52.0 expected (prior 53.0)
- Composite 53.6 vs 54.6 prior
These numbers are very close to consensus but there is some weakness creeping in, according to Chris Williamson at S&P
Global Market Intelligence:
“Further robust growth of output in September rounds off
the best quarter so far this year for US businesses. PMI
survey data are consistent with the economy expanding
at a 2.2% annualized rate in the third quarter.
“However, the monthly profile is one of growth having
slowed from its recent peak back in July, and September
saw companies also pull back on their hiring. Softening
demand conditions are also becoming more widely
reported, curbing pricing power. Although tariffs were
again cited as a driver of higher input costs across both
manufacturing and services, the number of companies
able to hike selling prices to pass these costs on to
customers has fallen, hinting at squeezed margins but
boding well for inflation to moderate.
“The survey data are nevertheless still indicative of
consumer inflation remaining above the central bank’s 2%
target in the coming months. However, in manufacturing,
there are also signs that disappointing sales growth has
caused inventories to accumulate at an unprecedented
rate, which could also further help soften inflation in the
coming months.
“The inventory build-up of course also hints at some
downside risks to future production. While growth
expectations across both manufacturing and services
also continue to be dogged by concerns over the
political environment, and especially tariffs, September
encouragingly saw business sentiment improve in part
due to the anticipated beneficial impact of lower interest
rates.”
This article was written by Adam Button at investinglive.com.