US Manufacturing PMI Rises to 54.5% in September 2026
ISM's September 2026 Manufacturing PMI hit 54.5%, signaling broad expansion across new orders, production, and employment.
U.S. manufacturing activity expanded solidly in September 2026, with the Institute for Supply Management's Manufacturing PMI climbing to 54.5%, according to the organization's monthly report released Thursday from Tempe, Arizona. A reading above 50% indicates growth in the sector, making this a notably strong result.
Key sub-indexes painted a broadly positive picture of the industrial economy. New orders and production both registered growth, while employment in the manufacturing sector also expanded during the month — a combination that suggests factories were ramping up output to meet rising demand and adding workers to keep pace.
Read more US Jobless Claims Dip to 197,000 in Late September →
Supply chain dynamics added complexity to the otherwise upbeat report. Supplier deliveries slowed, a condition typically interpreted as a sign of heightened demand placing pressure on logistics networks. At the same time, raw materials inventories contracted, indicating that manufacturers were drawing down stockpiles rather than accumulating them, while customers' inventories were reported as too low — a dynamic that could sustain future order growth.
On the trade and pricing front, both imports and exports grew during September, reflecting active cross-border commerce in manufactured goods. Prices paid by manufacturers increased, a development that may warrant attention from policymakers and business planners monitoring inflationary pressures within the goods-producing sector.
Analysts generally view a PMI in the mid-50s as indicative of healthy, above-trend expansion in manufacturing — a sector that has faced uneven conditions in recent years. The breadth of improvement across demand, output, employment, and trade signals a resilient industrial base heading into the fourth quarter. Continue reading at Economic News, Trends, Analysis.
