PMI Manufacturing Sample Reports Near Stagnant Conditions

The PMI manufacturing sample continues to report near stagnant conditions but a little less stagnant than prior readings. September's 51.1 final reading is up 8 tenths from August and is the best showing since April. Still, the level is only slightly over breakeven 50 to indicate no more than subdued growth in composite activity during the month.

The best news is an upturn in new orders that, however, is centered entirely in domestic markets as exports sales fell at one of the very sharpest rates of the last five years, or as the report says: "Ongoing trade wars also reportedly exacerbated difficult external demand conditions." Like overall orders, production also improved but is being supported by the accelerated working down of backlogs.

The report describes the sample's confidence as "gloomy", hiring as "tentative", and inflation pressures "subdued".