Manufacturers indicated the fastest improvement in operating conditions since January 2019 in September, as highlighted by the IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index (PMI) posting 53.5, up from 53.1 in August. The expansion was solid overall, signaling a further recovery from April’s nadir.
The overall upturn was supported by a faster rise in production at manufacturers, with a further increase in new orders and the resumption of operations at clients helping drive growth. New business rose at a solid pace that was broadly similar to August’s 19-month high.
The expansion in new export orders slowed, however, and was only marginal overall. At the same time, output charges rose at the fastest rate since January 2019, as firms partially passed higher costs on to clients following sustained growth in demand.