ISM’s Purchasing Managers Index Virtually Flat in September

Tempe, AZ, October 1, 2026—The Manufacturing Purchasing Managers Index (PMI) registered 54.5% in September, 0.1 percentage point below the August figure of 54.6%. 

The overall economy continued in expansion for the 23rd month in a row. (A Manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index expanded for the ninth consecutive month after four straight readings in contraction, registering 55.3%, up 1.6 percentage points compared to August’s figure of 53.7%. 

The September reading of the Production Index (56.7%) is 1.6 percentage points lower than the 58.3% recorded in August. 

The Prices Index remained in expansion (or ‘increasing’ territory), registering 77.9%, a notable increase of 6.8 percentage points compared to August’s reading of 71.1%. 

The Backlog of Orders Index registered 56.4%, up 4.6 percentage points compared to the 51.8% recorded in August. 

The Employment Index reading of 52.7% is up 1.5 percentage points from August’s figure of 51.2%.

The Supplier Deliveries Index indicated slowing performance for the tenth month in a row after one month in ‘faster’ territory. The reading of 59% is down 0.3 percentage point from its August reading of 59.3%. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index registered 48.6%, down two percentage points compared to August’s reading of 50.6%. The Customers’ Inventories Index reading of 41.6% is 1.2 percentage points lower compared to the 42.8% recorded in August.

The New Export Orders Index lost 2.3 percentage points in September for a reading of 50.9% versus 53.2% in August. The Imports Index registered 51%, a decrease of 1.5 percentage points compared to August’s reading of 52.5%.

Of the six largest manufacturing industries, five (computer & electronic products, food, beverage & tobacco products, transportation equipment, machinery; and chemical products) expanded in September.

The 12 manufacturing industries reporting growth in September—listed in order—are electrical equipment, appliances & components; nonmetallic mineral products; primary metals; plastics & rubber products; computer & electronic products; fabricated metal products; furniture & related products; food, beverage & tobacco products; transportation equipment; machinery; miscellaneous manufacturing; and chemical products. the two industries reporting a contraction in september are: printing & related support activities; and textile mills.