The Purchasing Managers' Index (PMI) for the manufacturing industry in the US increased by 1 point in September, exceeding market expectations.
S&P Global announced the US manufacturing, services and composite PMI preliminary data for September.
Accordingly, the manufacturing PMI increased by 1 point in September compared to the previous month and rose to 48.9.
The index, which increased above market expectations and reached the highest level of 2 months, was expected to reach 48 in this period. Despite the increase in this period, the index, which indicates that the contraction in the manufacturing sector continues, was 47.9 in August.
Service sector data remained below expectations
In the US, the service sector PMI decreased by 0.3 points in September compared to last month to 50.2.
The index, which remained below market expectations and fell to its lowest level in 8 months, was estimated to be 50.6. Despite the decline in this period, the index, which shows that the expansion in the service sector continues, was recorded as 50.5 in August.
The composite PMI, which includes manufacturing and services sectors, decreased by 0.1 points on a monthly basis to 50.1 in September. The index, which fell to its lowest level in 7 months in the said period, was 50.2 in August.
"September data raised concerns"
Sian Jones, Chief Economist at S&P Global Market Intelligence, stated that the September PMI data raised concerns about the course of demand conditions in the US economy after interest rate hikes and rising inflation.
Pointing out that the service sector lost further momentum, Jones said, "With costs rising rapidly again, inflationary pressures remained evident."
A PMI reading of 50 and above indicates expansion in the sector, while a reading below 50 indicates contraction.
Manufacturing PMI in the US exceeded expectations!
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