Manufacturing Sample Report Shows Weakness

September has been a very soft month for Markit's U.S. manufacturing sample where the flash PMI is at 51.4, down from 52.0 in final August and from 52.1 for the August flash. New orders are rising at their slowest rate of the year with export orders dipping into contraction. Hiring is subdued and the sample is cutting back inventories. The sample is also cutting selling prices. Production is the weakest it has been in three months. This report confirms regional manufacturing reports which have also been soft so far this month. The factory sector, drifting sideways, hasn't been able to get in gear this year, the result of weak business investment in new equipment and weak foreign demand.

Recent History Of This Indicator:
The manufacturing PMI has been holding only modestly above 50 to indicate modest growth for the nation's factory sector. The PMI for August came in at 52.0 with growth slowing for both new orders and employment. The sample for this report has also been cutting inventories which indicates lack of confidence in the business outlook. One major plus in the August report was a rare gain in export orders.