The Institute for Supply Management's purchasing managers' index stood at 54.5 last month, compared to 54.6 in August and economists' expectations of 54.8. A reading above 50 denotes expansion.

Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, noted that pricing volatility was mentioned in just under half of the "negative comments" given by respondents to the survey, while 34% highlighted the effect of tariffs on their businesses, and 30% flagged the impact of the Iran war.

Critically, the report's tracker of prices came in at 77.9, up from 71.1 in the prior month and well above analysts' estimates of 72.9.

"[T]he inflation number [...] is the big takeaway from this report, and it means the September price readings for the overall economy [...] are likely to be quite hot, with all the attendant macro fallout," analysts at Vital Knowledge said in a note.

An index of factory backlogs also rose to 56.2 from 51.8 in August, with businesses in particular underlining a surge in orders in the semiconductor, electronics and government sectors. Firms have been racing to accrue the chips and equipment needed to rapidly build out the data centers powering artificial intelligence models.

But the heavy demand has snagged supplies for some products. Respondents to the survey from the machinery industry said they were seeing longer lead times and increased price pressures, while a tit-for-tat tariff fight between the U.S. and Canada was driving up cross-border expenses.

Pour lire la suite : https://www.hellenicshippingnews.com/u-s-factory-activity-eases-in-september-as-prices-jump-ism-survey-shows/