US: Markit Manufacturing PMI improves to 55.6 in September vs 55 expected

"The seasonally adjusted IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index pointed to a robust improvement in business conditions across the manufacturing sector during September," the IHS Markit said in its latest report.

Key quotes

• At 55.6, up from 54.7 in August, the headline index was the highest since May. 
• Stronger rates of output and new order growth were the main factors boosting the PMI in September. 
• Input buying increased at the strongest rate for four years in September.
• There were signs that manufacturers have become more cautious about the year-ahead growth outlook, with business sentiment moderating to its lowest since March 2017.

On the service sector, "The seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index dropped to 52.9 in September, from 54.8 in August, to signal the weakest expansion of service sector output since March 2017," the IHS Markit noted.

• However, a renewed rise in backlogs of work and stronger new business growth provided signs of resilient underlying demand during September.
• Efforts to boost operating capacity underpinned a robust and accelerated upturn in employment.
• Expectations for activity growth over the year ahead softened in September.