Products You May Like
A worker moves a Venice model roadster vehicle at the Vanderhall Motor Works manufacturing facility in Provo, Utah, Sept. 25, 2018.
George Frey | Bloomberg | Getty Images
The U.S. manufacturing sector activities rebounded slightly in September, according to IHS Markit.
The seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index hit 51.1 in September, the highest level in five months, rebounding from 50.3 in August. Any reading above 50 shows an expansion.
“News of the PMI hitting a five-month high brings a sigh of relief, but manufacturing is not out of the woods yet,” Chris Williamson, chief business economist at IHS Markit said in a statement. “The September improvement fails to prevent US goods producers from having endured their worst quarter for a decade. Given these PMI numbers, the manufacturing recession appears to have extended into its third quarter.”
A quicker rise in production was a big driver for the sector, Markit noted. The recovering in production was the fastest since April following reports of slightly stronger client demand and efforts to clear backlogs, Markit said.
A different gauge from the Institute for Supply Management showed the sector contracted in August, its first decline since 2016, a sign that the U.S.-China trade war is taking a bite from the economy.
The ISM PMI reading for September will be released on Tuesday at 10 a.m. ET. The sector is expected to rebound from August low of 49.1% to 50.1%, according to Dow Jones.
This is breaking news. Please check back for updates.