Growth in the U.S. manufacturing sector slowed in September to a 16-month low, according to the Institute for Supply Management survey of manufacturers.
The ISM manufacturing index fell to 52.9 in September from 54.5 a month ago. A reading below 50 would indicate a recession in the manufacturing sector.
"The number was on the soft side but it still shows an expansion of manufacturing," Gary Thayer, chief economist at A.G. Edwards, tells Reuters. "The components didn’t look too bad, so it looks like there is a cooling off in manufacturing but not a big decline under way."
Each of the components slowed with the exception of a rising import index and steady new orders. The employment, order backlog, and inventories indexes fell below a reading of 50, meaning that they are contracting.
The Associated Press posited that the cooling housing market and struggling auto industry are leading factors in the manufacturing slowdown.
The ISM manufacturing index fell to 52.9 in September from 54.5 a month ago. A reading below 50 would indicate a recession in the manufacturing sector.
"The number was on the soft side but it still shows an expansion of manufacturing," Gary Thayer, chief economist at A.G. Edwards, tells Reuters. "The components didn’t look too bad, so it looks like there is a cooling off in manufacturing but not a big decline under way."
Each of the components slowed with the exception of a rising import index and steady new orders. The employment, order backlog, and inventories indexes fell below a reading of 50, meaning that they are contracting.
The Associated Press posited that the cooling housing market and struggling auto industry are leading factors in the manufacturing slowdown.
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