Manufacturing slowed in September

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.

Durable goods orders drop 1.3% in August

Excluding transportation, new orders rose 2%

Orders for U.S.-made durable goods fell 1.3% in August, the largest decline in a year and below expectations of many economists, the Commerce Department reported today.

Excluding automotive and aircraft, new orders rose 2%.

Shipments in August fell 1.5%, compared with a gain of 2.5% in the prior month.
Inventories of durable goods rose 0.4% in August, following a gain of 0.6% in July.

Manufacturing has been slowing down , according to other recent surveys.Factories in the New York region expanded in September at the slowest pace this year, while manufacturing in the Philadelphia area contracted for a second month, according to regional Fed surveys. Manufacturing output nationwide grew 0.2 percent in August following a 0.7 percent July gain, the Fed said last week.

Industrial production sluggish in August

Manufacturing in New York region fails to meet expectations

Industrial production in the U.S. slowed in August as automakers scaled back following an increase in output in July.

Industrial production increased 0.2 percent last month after rising 0.6 percent in July, figures from the Federal Reserve showed today. Factory output climbed 0.5 percent excluding autos, the most since May..

Other reports today showed manufacturing in the New York region expanded at a slower pace than forecast.

The Fed Bank of New York’s general economic index fell to 4.1 this month, the lowest reading since July 2009, from 7.1 in August. Readings greater than zero signal expansion. Measures of orders, sales and employment all improved, showing the drop in the index was mainly a reflection of a loss of confidence.