Chris Williamson, chief business economist at S&P Global Markets Finance, said, “The growth rate of the US manufacturing industry accelerated again in September. The PMI was at its highest level since May 2022. The surge in new orders prompted factories to drastically increase production and increase employment. The increasing backlog of orders and busier suppliers indicates that production capacity is already tight and companies are struggling to meet demand from consumers and the corporate sector. This is particularly true for investment and production of machinery and equipment, which in many cases is linked to an increase in AI related spending. Despite the disappointing decline in export orders, increased safety stocks also continued to support demand due to concerns about prices and the supply chain. Although this is an encouraging sign of further growth in manufacturing capacity in the coming months, signs that demand is exceeding supply also mean that inflationary pressure remains a key area of concern, particularly with high oil prices. Accelerated economic growth, increased recruitment, and higher price indicators will exacerbate market speculation that the Federal Reserve is about to raise interest rates further.”

Chris Williamson, chief business economist at S&P Global Markets Finance, said, “The growth rate of the US manufacturing industry accelerated again in September. The PMI was at its highest level since May 2022. The surge in new orders prompted factories to drastically increase production and increase employment. The increasing backlog of orders and busier suppliers indicates that production capacity is already tight and companies are struggling to meet demand from consumers and the corporate sector. This is particularly true for investment and production of machinery and equipment, which in many cases is linked to an increase in AI related spending. Despite the disappointing decline in export orders, increased safety stocks also continued to support demand due to concerns about prices and the supply chain. Although this is an encouraging sign of further growth in manufacturing capacity in the coming months, signs that demand is exceeding supply also mean that inflationary pressure remains a key area of concern, particularly with high oil prices. Accelerated economic growth, increased recruitment, and higher price indicators will exacerbate market speculation that the Federal Reserve is about to raise interest rates further.”