According to the Institute for Supply Management (ISM) Report On Business, economic activity in the national manufacturing sector contracted in September for the 11th consecutive month following a 28-month period of growth.
ISM's New Export Orders Index registered 47.4 percent in September, 0.9 percentage point higher than the August reading of 46.5 percent. Supply manager comments noted the weak performance in export order levels, especially for Europe.
Imports contracted as well, although more slowly, notching 48.2 percent in September, an increase of 0.2 percentage point compared to August's figure of 48 percent - a slightly slower rate in September.
In the Heartland, the Creighton University Mid-America Business Conditions Index, a leading economic indicator for the nine-state region stretching from Minnesota to Arkansas, climbed above the 50.0 growth neutral threshold for September to 52.5 from 49.5 in August.
“The Mid-America regional manufacturing economy has weakened from earlier in the year and from the same period in 2022. Government data indicate that the regional manufacturing economy has lost jobs for four of the past five months,” said Ernie Goss PhD, director of Creighton University’s Economic Forecasting Group and the Jack A. MacAllister Chair in Regional Economics in the Heider College of Business.
September Heartland new export orders were once again weak with new export orders falling to 34.5 from August’s 39.3. September imports increased to 44.1 from 41.2 in August.