US ISM manufacturing PMI unchanged at 47.2 in September vs. 47.5 expected

• Business activity in the US manufacturing sector continued to contract in September.
• The US dollar index is clinging to daily gains near 101.00.

Business activity in the US manufacturing sector continued to contract in September, with the ISM Manufacturing PMI reaching 47.2. This reading matched the August print, but fell short of market expectations of 47.5.

The PMI Employment Index fell to 43.9 from 46 over the same period, and the Prices Paid Index fell sharply to 48.3 from 54. Finally, the New Orders Index improved to 46.1 from 44.6.

Commenting on the survey results, “demand remains subdued as companies have shown a reluctance to invest in capital and inventories due to federal monetary policy – ​​which the US Federal Reserve has addressed up to the time of this report – and election uncertainty” , said Timothy R. Fiore, chairman of the Institute for Manufacturing Supply Management’s Investigative Committee.

“Production execution stabilized in September. Suppliers continue to have capacity, lead times are improving and shortages are reoccurring,” added Fiore.

Market reaction

The US dollar index is holding in the upper half of its daily range at around 101.00 following this report.