In September, the Institute for Supply Management's (ISM) manufacturing index increased 2.1 points from August to a reading of 51.5. The rise was led by a healthy surge in the new orders subindex, which rebounded 6.0 points from the previous month to a 55.1 reading. The production subindex also returned to expansionary territory, climbing 3.2 points to 52.8. However, the employment subindex remained in contractionary territory for the third consecutive month, suggesting that factory payrolls continued to shrink. Overall, the September ISM index indicated that manufacturing activity, while expanding slightly, remains somewhat muted.
