Manufacturing sentiment survey from Markit
- Lowest since July 2020
- Prior services was 55.1
- Prior was 61.1
- Manufacturing flash 60.5 vs 61.5 expected
- Prior manufacturing was 61.1
- Composite 54.5 vs 55.4 prior (shown above)
- New order growth eased to slowest since Aug 2020
- Backlogs of work rose strongly to 2nd fastest in 12 years
- Input prices rose at a sharper pace
- Output prices hit new record high
That's another sign of some moderate slowing in growth. Both indexes is are still comfortably in expansionary territory but those forecasts for strong GDP through year end are dying.
Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:
"The pace of US economic growth cooled further in September, having soared in the second quarter, reflecting a combination of peaking demand, supply chain delays and labour shortages.
"The slowdown was led by a cooling of demand in the service sector, linked in part to the Delta variant spread. However, while manufacturers have seen far more resilient demand, factories face growing problems in sourcing enough supplies and labour to meet orders. Supply chain delays show no signs of easing, with another near-record lengthening of delivery times in September. Hence factory output growth also weakened and order book backlogs rose at a record pace in September.
"The upshot is yet another month of sharply rising prices charged for goods and services as demand outpaces supply, and higher costs are passed on to customers."