Declines in New Orders for Goods Leads to Slowing in U.S. Manufacturing Sector
According to the National Association of Manufacturers’ (NAM) Monday Economic Report for this week, manufacturing activity remained sluggish in September.
The S&P Global Flash U.S. Manufacturing PMI dropped from 47.9 in August to 47 in September, tumbling for the third consecutive month and at the steepest rate since June 2023. The largest negative contribution to the PMI came from new orders, which fell at the fastest rate since December 2022. The decline in demand shortens delivery times and indicates spare capacity across the supply chain. Additionally, manufacturing input inflation dropped to a six-month low with lower energy prices and fewer supply chain price pressures. Consequently, goods producers shed the most jobs since June of 2020.