S&P Global Market Intelligence chief business economist Chris Williamson said US
manufacturing accelerated in September, with the PMI at its highest level since
May 2022. A surge in new orders drove sharp increases in output and employment;
backlogs climbed and suppliers grew busier, signaling capacity is tightening.
Machinery investment and production were especially strong, often linked to
rising AI-related spending. Export orders continued to fall, but precautionary
inventory rebuilding amid price and supply concerns is supporting demand. With
demand outstripping supply and oil prices elevated, inflationary pressure
remains a key risk, and faster growth, stronger hiring and higher price measures
will intensify market expectations of further Fed rate hikes.
