Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Manufacturing Still Sluggish, Construction Declines

September marks another month of relatively subdued growth across the U.S. manufacturing sector, according to a preliminary report, and construction activity in the U.S. retreated in August.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
September 23, 2015
Economic Watch: Manufacturing Still Sluggish, Construction Declines

 

3 min to read


September marks another month of relatively subdued growth across the U.S. manufacturing sector, according to a preliminary report, and construction activity in the U.S. retreated in August.

The Flash U.S. Manufacturing Purchasing Managers’ Index from the financial information services provider Markit registered 53.0 in September, unchanged from August’s 22-month low, signaling one of the slowest rates of overall manufacturing sector expansion in the past two years.

Ad Loading...

The latest index reading is also weaker than the post-financial crisis average of 54.3.

Although output rose at a slightly faster pace in September, softer rates of new business and employment growth placed downward pressure on the headline PMI reading, according to the report. The latest increase in new work was the weakest since January 2014, which manufacturers linked to greater caution among clients and subdued overall business conditions.

New export orders picked up marginally in September, despite widespread reports that the strong dollar had weighed on demand from abroad. Although only slight, the latest rise was the most marked since February.

Ad Loading...

“The disappointing performance of the goods-producing sector has so far been offset by stronger expansion in the larger services sector, which means the economy looks to have grown at a reasonable 2.5% annualized pace in the third quarter," said Chris Williamson, chief economist at Markit. "But there are question marks over whether this growth can be sustained as we move towards the end of the year. Inflows of work showed the smallest rise since the start of 2014, and job creation has also slowed, he noted.

Williamson believes this sluggish growth, weaker forward-looking indicators and downturn in price pressures all point to the U.S. Federal Reserve holding off with rate hikes until next year.

This follows a separate report issued Monday showing new construction starts in August dropped 11% to a seasonally adjusted annual rate of $554.5 billion in the U.S., according to construction industry data provider Dodge Data and Analytics.

Declines were reported for each of construction's three main sectors. Nonresidential building and housing pulled back from their improved July pace, falling 16% and 8%, respectively, while nonbuilding construction continued to retreat for the third straight month from the heightened performance witnessed earlier in 2015. The sector fell 12% in August.

During the first eight months of 2015, total construction starts on an unadjusted basis are up 15% from the same period a year ago. If the volatile electric utility and gas plant category is excluded, total construction starts during the first eight months of 2015 would be up a more moderate 7% relative to last year.

Ad Loading...

"While August construction starts were notably subdued compared to recent months, it's useful to keep in mind that construction starts on a monthly basis will often show an up-and-down pattern, and the year-to-date statistics depict an expansion that's still proceeding," said Robert A. Murray, chief economist for Dodge Data and Analytics.

More Fleet Management

Geotab screen on AI concept background
Fleet ManagementJune 17, 2026

What Geotab's New AI Connector Means for Fleets

Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.

Read More →
Image of computer screen with BidBoardX interface

New C.H. Robinson Tool Opens Door to More Predictable Freight

BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.

Read More →
Amazon electric cargo bike on New York City street
Fleet ManagementJune 15, 2026

New York City's Microhub Project is Delivering Results

Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.

Read More →
Ad Loading...
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeJune 12, 2026

Time is Running Out to Apply for Exclusive HDT Event

Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.

Read More →
Empty trailer with worker loading a pallet of cargo
Fleet ManagementJune 10, 2026

Amazon Launches Less-Than-Truckload Freight Offering for All Businesses   

This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.

Read More →
Ad Loading...
Stacks of intermodal containers at port with truck driving between them

Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall

After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.

Read More →
Equity Interest Auction
SponsoredJune 8, 2026

AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!

Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.

Read More →
Volvo OTA updates.

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities

The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.

Read More →
Ad Loading...
Podcast thumbnail illustration
Fleet ManagementJune 4, 2026

How Waste Connections is Using Data, Telematics, and AI

How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.

Read More →