Fourth quarter could be weaker than expected
Manufacturing expanded in September at the slowest pace in 10 months, indicating that that the fourth quarter could be weaker than originally expected.
The Institute for Supply Management’s factory index dropped to 54.4 from 56.3 in August, the group reported today. Readings greater than 50 signal growth.
Norbert Ore, head of the ISM’s survey committee, said the September report was “less encouraging” and suggested a weaker fourth quarter.
Meanwhile, a separate report said today that China’s manufacturing expanded in September at the fastest pace in four months. The purchasing managers’ index rose to 53.8 from an August reading of 51.7,
Growth in European manufacturing slowed. A gauge of manufacturing in the 16-nation euro region declined to 53.7 in September from 55.1 the previous month.
The ISM’s U.S. new orders index declined to 51.1 from 53.1, while the production index decreased to 56.5 from 59.9.