WASHINGTON – The pace of U.S. manufacturing growth slowed in September, as expectations for hiring and new orders slipped from their August levels.
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The Institute for Supply Management, a trade group of purchasing managers, says its manufacturing index fell to 56.6 from 59 in August. Anything above 50 signals that manufacturing is growing.
The index's measure of new orders fell to 60 from a reading of 66.7, while the employment component fell to 54.6 from 58.1. The one upside is that customer inventories continue to remain low, suggesting that there will be continued demand from factories.
Manufacturers have reported growth for the past 16 months, as the sector has helped drive the recovery from the Great Recession.