The ISM Manufacturing PMI eased slightly to 54.5 in September 2026 from 54.6 in August, falling short of market expectations of 55. Despite the marginal decline, the index continued to signal solid expansion in the manufacturing sector.
Growth in new orders accelerated (55.3 vs. 53.7), and employment also strengthened (52.7 vs. 51.2), even as production moderated somewhat (56.7 vs. 58.3). The Supplier Deliveries Index pointed to slower deliveries for the tenth consecutive month (59 vs. 59.3), inventories moved back into contraction territory (48.6 vs. 50.6), and the backlog of orders increased at a faster pace (56.4 vs. 51.8).
Price pressures intensified sharply (77.9 vs. 71.1), reflecting higher costs for steel and aluminum, tariffs on a broad range of imported goods, and rising petroleum-based product prices linked to the conflict in the Middle East.
“Forty percent of respondents’ comments were positive and sixty percent were negative. Among the negative comments, pricing volatility was cited by 46%, tariffs by 34%, the Iran war by 30%, and longer lead times by 21%,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee.
