US Manufacturing PMI Holds at 54.5 in September as Input Prices Jump

US manufacturing activity was little changed in September, with input prices surging on strong demand and pointing to sustained inflation pressures, the Institute for Supply Management said on Oct. 1. The ISM manufacturing PMI dipped to 54.5 last month from 54.6 in August, below a Reuters forecast of 55.0. The index has stayed above the 50 growth threshold all year. The prices-paid gauge jumped to 77.9 from 71.1, while new orders rose to 55.3 from 53.7. An AI infrastructure buildout and inventory rebuilding are supporting factory activity. Concerns persist that non-AI segments could struggle as the US-Israeli war with Iran snarls supply chains and lifts energy costs, with diesel at record highs. Factory employment rose to 52.7 from 51.2 in August. Economists expect manufacturing payrolls to have added 10,000 jobs, with overall nonfarm payrolls up 90,000 and unemployment steady at 4.1%. The September employment report is due Friday.