US manufacturing slumps less than expected in September

US manufacturing beat predictions to contract by less than analysts expected in September despite continued weakness of new orders, survey data showed Monday.

The Institute for Supply Management's (ISM) manufacturing index came in higher than expected at 49 percent in September, up from 47.6 percent a month earlier.

This was 1.0 percent above the median expectation of economists surveyed by MarketWatch, but below the 50 percent threshold indicating growth in the sector.


"The US manufacturing sector continued its contraction trend but at a slower rate, recording its best performance since November 2022," ISM survey chief Timothy Fiore said in a statement.

Nevertheless, September marks the 11th straight month of contraction, signaling ongoing challenges in the manufacturing sector.

The Federal Reserve has been on an aggressive campaign of interest rate hikes to tackle high inflation since March last year, which hits consumer demand.

Fiore said companies were still managing orders as softness continues, adding that the monthly improvement in September was "a clear positive."

The ISM's index for new orders slowed its decline, while the index for new export orders also continued in contraction territory, "but with a marginal increase," Fiore said.