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US ISM Manufacturing: Slowdown in September - Wells Fargo

Today’s data showed a slowdown in the ISM Manufacturing index in September to 59.8. Analysts at Wells Fargo point out that new orders and order backlogs both fell and are now below their respective six-month averages. They mentioned that four separate respondents cited tariffs as a headwind.

Key Quotes: 

“A notable shift from August was in supplier deliveries, which slipped 3.4 points to 61.1. That reading still indicates that supply chains are tight, but not quite as stretched as they were earlier. Nearly matching that decline was the 3.3 point slowing for the new orders component, which now sits at 61.8. Again, this is still consistent with growth in factory orders, but likely at a more moderate pace.”

“The biggest mover among the subcomponents was the measure of prices paid, which slipped 5.2 points to 66.9. That is the first print below 70 so far this year.”

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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