U.S. September ISM Manufacturing Growth Slows Slightly... Unemployment Claims Fall Below Expectations

September Manufacturing PMI at 54.5

Price Index Jumps by 6.8 Points

Initial Jobless Claims at 197,000

Lowest Since Mid-July

The growth of U.S. manufacturing in September slowed slightly, while the cost burden on companies increased. On the other hand, new unemployment claims came in below market expectations, indicating that the labor market remains robust.

A worker is stocking products at a supermarket located in New York. New York, USA - Photo by Yoonju Hwang

On October 1 (local time), the Institute for Supply Management (ISM) announced that the September Manufacturing Purchasing Managers' Index (PMI) stood at 54.5, down 0.1 point from the previous month. Remaining above the critical threshold of 50—which separates expansion from contraction—the index has stayed in expansionary territory for the ninth consecutive month since January.

Analysts attribute the sustained demand in manufacturing to investments in artificial intelligence (AI) infrastructure, solid domestic consumption, and defense spending. However, amid strong demand, rising energy prices and supply chain bottlenecks have intensified cost pressures on companies. The price index, which tracks changes in input costs such as raw materials, surged by 6.8 points to 77.9 from 71.1 in the previous month.

Unemployment benefits data released the same day confirmed low levels of layoffs. According to the U.S. Department of Labor, initial unemployment claims for the week of September 20–26 totaled 197,000, down by 1,000 from the previous week. This figure came in below the 200,000 projected by experts polled by Dow Jones, and marked the lowest level since mid-July.

The number of continuing claims, representing those who have applied for unemployment benefits for more than two weeks, was 1,701,000—a decrease of 11,000 from the previous week. This is the lowest level since March 2023.

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