The latest index reading was also weaker than the post-financial crisis average (54.3). Although output rose at a slightly faster pace in 1 Please note that Markit’s PMI data, flash and final, are derived from information collected by Markit from a different panel of companies to those that participate in the ISM Report on Business. No information from the ISM survey is used in the production of Markit’s PMI.
September, softer rates of new business and employment growth placed downward pressure on the headline PMI reading. The latest increase in new work was the weakest since January 2014, which manufacturers linked to greater caution among clients and subdued overall business conditions. New export orders picked up marginally in September, despite widespread reports that the strong dollar had weighed on demand from abroad. Although only slight, the latest rise was the most marked since February.
Weaker overall new order growth and heightened uncertainty regarding the global economic outlook encouraged inventory streamlining and more cautious job hiring across the manufacturing sector in September. The latest increase in payroll numbers was only marginal and the weakest since July 2014. A number of firms commented on the nonreplacement of departing staff and efforts to boost productivity at their plants.
