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US manufacturing slipped more than expected.
Markit Economics’ flash purchasing managers’ index for September – a preliminary reading – fell to 51.4.
Economists had forecast that the index dipped slightly to 51.9.
The report also noted that new business growth continued to ease from June’s peak and that export orders dropped for the first time since May.
However, it wasn’t all bad news.
“Despite the growth setback in September, manufacturers appear reasonably upbeat about their longer-term prospects,” Tim Moore, Senior Economist at IHS Markit said, wrote in the report.
“Reflecting this, job creation rebounded since August and input buying continued to expand at a notably faster pace than seen during the first half of the year. At the same time, overall cost inflation remained marginal and this provided some headroom to stimulate client spending through price discounting.”
Notably, the report also noted that there was a moderate upturn in payroll numbers. Plus, Moore added that manufacturers reported “firmer job hiring than one month previously and input price inflation nudged upwards.”