The U.S. manufacturing sector experienced its sharpest decline in 15 months in September, according to S&P Global's latest data, while the services sector continued to expand at a steady pace.
S&P Global’s flash manufacturing PMI fell to 47.0 in September, down from 47.9 in August, marking the sector's lowest reading since June 2022.
Any reading below 50 signals contraction, highlighting growing challenges within the manufacturing sector. This was a sharper decline than economists had forecast, with expectations set at 48.5.
In contrast, the services sector, which accounts for a larger portion of U.S. economic activity, remained more resilient.
The services PMI registered a reading of 55.4, slightly lower than August’s 55.7 but still comfortably in expansion territory.
The services sector’s steady performance has been a key driver of economic growth, despite increasing uncertainties.
However, rising costs, particularly wage pressures, have contributed to increased prices for services, which could further fuel inflation in the months ahead.
Average prices charged for goods and services rose in September at the fastest pace in six months, reflecting growing cost pressures, particularly in the services industry.
The PMI survey’s measure of prices paid by businesses for inputs reached its highest level in a year, climbing to 59.1 from 57.8 in August. The price gauge for goods and services charged also increased to 54.7, up from 52.9.
