US Manufacturing Growth Slowed Slightly in September
The latest manufacturing index shows a slight dip, reflecting mixed trends in factory production and rising input costs.
Updated on Oct. 1, 2026 in Economic Indicators
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The Institute for Supply Management reported that the U.S. Manufacturing PMI reached 54.5 in September, a marginal decline from 54.6 in August. This index serves as a key indicator of industrial economic activity across the country.
Why it matters
Rising input costs and shifting order volumes can influence long-term industrial pricing and broader economic health. These metrics help households monitor the manufacturing sector's trajectory and potential impacts on national economic growth.
The manufacturing index registered 54.5 in September, coming in slightly below the analyst consensus of 55.0. Meanwhile, the Prices Paid Index climbed to 77.9 from 71.1, indicating an acceleration in inflationary pressure within the manufacturing sector.
The players
Institute for Supply Management
An organization that tracks economic activity and provides industry surveys used to gauge national manufacturing health.
The details
The Institute for Supply Management calculates these indices based on surveys of manufacturing business conditions. While the Employment Index improved to 52.7 from 51.2 and new orders rose to 55.3, the Production Index softened to 56.7 from 58.3. Higher readings in the Prices Paid Index suggest factories are facing elevated costs for materials, which can eventually impact consumer prices.
Timeline
September 2026 was the reporting month for the latest manufacturing PMI data.
August 2026 served as the previous month for the manufacturing indices.
April 2025 was the last time the US Dollar Index reached current levels near 102.00.
Money Landscape
Current manufacturing conditions are being evaluated against the backdrop of the US Dollar Index level from April 2025. This activity suggests the manufacturing sector is navigating a distinct period of price pressure compared to historical norms.
The rise in manufacturing costs can sometimes filter through to consumer prices over time. Households should monitor their own spending categories, especially regarding goods heavily tied to manufacturing input costs, and consult a financial professional for long-term planning.
The takeaway
Manufacturing growth has remained steady despite a slight monthly dip and rising input costs. Consider reviewing your household budget to account for potential price fluctuations in manufactured goods over the coming months.
Further reading
For broader trends on the industrial sector, visit the Economic Indicators section.
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