The Institute for Supply Management said Wednesday that its September manufacturing purchasing managers' index came in at 54.5, down 0.1 point from August. A reading above 50 indicates expansion in private-sector activity, while a reading below that threshold signals contraction. Analysts attribute the strength in manufacturing to investment in artificial intelligence infrastructure and defense spending.
Cost pressures on manufacturers increased, however, amid rising energy prices. The prices index jumped 6.8 points to 77.9 from 71.1 the previous month.
S&P Global's final September manufacturing PMI, released the same day, was 55.9, falling short of the 57.0 expected.
