Those flash PMI #s soft
US Manufacturing PMI (Sep P) M/M 53.0 vs. Exp. 52.8 (Prev. 53.0)
- Manufacturing Output Index (Sep P) M/M 54.3 vs. Prev. 53.8.
- Manufacturing Employment Index (Sep P) M/M 51.4 vs. Prev. 52.4; lowest reading since July.
(Markit)
Highlights
Growth in Markit's manufacturing sample remains as slow as it's been since October 2013, stuck at 53.0 for the September flash. The reading is the same as the final August result and little changed from August's flash of 52.9. It's also below the recovery's 54.3 average.
Growth in new orders is the slowest since January with businesses citing caution among customers and subdued business conditions. Export orders, hurt by weak foreign demand and strength in the dollar, have been very weak this year but did improve slightly in the latest report. Slow orders are leading the sample to slow hiring and trim inventories. The latest gain for employment is only marginal and the weakest since July last year.
Prices are especially weak in the report, showing the first drop in four months for input costs and the first drop in finished goods since August 2012. Fed policy makers, concerned by low inflation, are likely to take special notice.
The 53.0 headline points to more strength than many of the details of the report. Together with the September run so far of regional surveys, the manufacturing sector does not look like it's having much of a month. Watch for durable goods orders tomorrow for definitive data on August followed by the Kansas City manufacturing update for September.
The greatest deception men suffer is from their own opinions.
~ Leonardo da Vinci
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