US Manufacturing Price Pressures Intensify as ISM Prices Paid Hits 77.9
The ISM Manufacturing Prices Paid Index jumped 6.8 points in September to 77.9, the highest reading since May, while the headline PMI held in expansion for a ninth straight month.
US manufacturing price pressures strengthened in September. The ISM Manufacturing Prices Paid Index increased 6.8 points to 77.9, its highest level since May and the largest monthly rise since February. Year-to-date, the index has climbed 19.4 points, the third-biggest nine-month increase since 2021.
The headline ISM Manufacturing PMI eased 0.1 point to 54.5, remaining in expansion for a ninth consecutive month and marking its longest streak since 2022. New orders rose 1.6 points to 55.3, also posting a ninth straight monthly expansion. The backlog of unfilled orders jumped 4.6 points to 56.4, the second-highest level since May 2022.
The data suggest elevated demand is putting additional strain on manufacturing capacity and keeping inflation pressures alive in the goods sector.
Source: The Kobeissi Letter