• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Business»US manufacturing sector nears recovery; construction spending solid
Business

US manufacturing sector nears recovery; construction spending solid

October 3, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email
  • Manufacturing PMI rises to 49.0 in September from 47.6 in August
  • New orders improve; order backlogs shrink further
  • Factory employment increases; prices paid decline

WASHINGTON, Oct 2 (Reuters) – U.S. manufacturing took a step further towards recovery in September as production picked up and employment rebounded, according to a survey on Monday that also showed prices paid for inputs by factories falling considerably.

The third straight month of improvement reported by the Institute for Supply Management (ISM) strengthened economists’ expectations that economic growth accelerated in the third quarter, despite higher interest rates. That was reinforced by a Commerce Department report showing construction spending was solid in August, driven by the building of houses and factories.

The economy’s continued resilience raises hope that a recession could be averted in the near term.

“The soft landing narrative still holds as we enter the final quarter of 2023,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.

The ISM said that its manufacturing PMI increased to 49.0 last month, the highest reading since November 2022, from 47.6 in August. Still, September marked the 11th straight month that the PMI remained below 50, which indicates contraction in manufacturing. That is the longest such stretch since the 2007-2009 Great Recession.

Economists polled by Reuters had forecast the index edging up to 47.7. Last month’s rise pulled the PMI above the 48.7 level that the ISM says over time indicates an expansion of the overall economy. Growth estimates for the third quarter are as high as a 4.9% annualized rate. The economy grew at a 2.1% pace in the April-June quarter.

See also  Vodafone and Three merger faces scrutiny from competition regulators

A survey from S&P Global also struck a fairly optimistic note on manufacturing.

Five manufacturing industries in the ISM survey reported growth last month, including textile mills and primary metals.

Among the 11 industries reporting contraction were computer and electronic products, machinery, as well as electrical equipment, appliances and components.

Comments from respondents in the survey remained mixed. Makers of transportation equipment said “orders and production remain steady, and we are maintaining a healthy backlog.”

Manufacturers of miscellaneous goods said they were keeping an eye on the Panama Canal drought, U.S.-China relations, and the impact the United Auto Workers strike on the supply chains. They, however, viewed overall conditions as “stable.”

Apparel, leather and allied products makers described markets as “soft,” while primary metals producers said “business conditions and market demand remain strong,” and they “projected to be at capacity in the next 12 months.” Petroleum and coal products manufacturers said “a recession feels imminent.”

Stocks on Wall Street were higher. The dollar rose against a basket of currencies. U.S. Treasury prices fell.

ISM manufacturing PMI

NEW ORDERS IMPROVE

While the PMIs and other business surveys have painted a grim picture of manufacturing, which accounts for 11.1% of the economy, so-called hard data have suggested that the sector continues to chug along.

Orders for long-lasting manufactured goods increased 4.2% year-on-year in August and business spending on equipment appears to have remained strong in the third quarter after rebounding in the April-June period.

The ISM survey’s forward-looking new orders sub-index increased to 49.2 last month from 46.8 in August. With new orders improving, production at factories accelerated. The production index increased to 52.5 from 50.0 in the prior month.

See also  Chevron, unions begin mediation talks to avert Australia LNG strike

But the average commitment lead time for capital expenditures increased by two days.

“This compares to an average of 139 days in over the period 2015-2019, indicating that it still takes a long time to order, obtain, and install business equipment,” said Conrad DeQuadros, senior economic adviser at Brean Capital in New York.

Though backlog orders shrank, inventories at factories and their customers remained very low, which should support future production. Delivery performance of suppliers to manufacturers improved for the 12th straight month. This, together with still- sluggish demand, helped to depress prices for factory inputs.

The survey’s measure of prices paid by manufacturers fell to 43.8 from 48.4 in August. This bodes well for goods disinflation, but the striking auto workers could boost prices of motor vehicles. Rising energy prices could drive inflation higher, but also support manufacturing.

“High oil prices may present headwinds for some parts of the economy and not every manufacturer celebrates higher prices for crude, but on balance high oil prices are associated with brisk activity in manufacturing,” said Tim Quinlan, a senior economist at Wells Fargo in Charlotte, North Carolina.

Factory employment improved further after slumping to three-year lows in July. The survey’s gauge of factory employment rose to 51.2 last month from 48.5 in August.

“Attrition remained the primary source of head-count reductions, but hiring freezes were more prevalent,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee.

A separate report from the Commerce Department showed construction spending increased 0.5% in August after rising 0.9% in July, lifted by outlays on single- and multi-family housing. But with mortgage rates near 23-year highs, momentum could slow.

See also  Sri Lanka slashes rates as expected after IMF rescue, more easing seen soon

Construction spending jumped 7.4% on a year-on-year basis in August. Spending on private construction projects rose 0.5%, with investment in residential construction advancing 0.6% after increasing 1.6% in the prior month. Private construction spending gained 1.2% in July.

Construction spending

Spending on private non-residential structures like factories climbed 0.3% in August. Spending on manufacturing construction projects shot up 1.2% amid efforts by the Biden administration to bring semiconductor manufacturing back to the United States.

Reporting By Lucia Mutikani; Editing by Andrea Ricci and Aurora Ellis

: .

Acquire Licensing Rights, opens new tab
Construction Manufacturing nears recovery Sector Solid spending
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025

Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

May 7, 2025

Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

May 7, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

‘Likes to Make it Personal with Me’

June 9, 2023

Why Will People Want to Live in Indonesia’s New Capital?

March 14, 2023

Chevron to boost U.S. presence with $7.6 billion PDC Energy buy

May 23, 2023

Tesla ‘Powerwall’ Battery Starts Fire in California Garage but Firefighters Save Home

June 25, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Ukraine Tennis Player Marta Kostyuk Booed for Refusing to Shake Hand of Belarusian Player

May 29, 2023

Dow Jones Futures: JPMorgan Buys First Republic As Market Rally Eyes 2023 Highs

May 1, 2023

‘Just Overkill’: Jonathan Turley Says New York AG ‘Hell Bent’ On Destroying Trump’s Companies

October 7, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.