Manufacturing Steady in September, Input Prices Increase

U.S. manufacturing activity was largely unchanged in September, but input prices rose sharply, according to the Institute for Supply Management. The ISM manufacturing PMI edged down to 54.5 from 54.6 in August, below the Reuters-forecast rise to 55.0, and remained above 50, signaling ongoing growth in an industry that makes up about 9.4% of the economy. New orders increased to 55.3 from 53.7, while supplier deliveries slowed to 59.0 from 59.3, keeping supply strain elevated. The prices-paid index jumped to 77.9 from 71.1, consistent with concerns that factory-gate inflation will stay above the Federal Reserve’s 2% target.