October 1st, 2026
ESCANABA, MI. -Manufacturing appears to be holding up fairly well, with the sector recording nine consecutive months of expansion. We do not need to get buried in all the details, but it is worth keeping an eye on manufacturing as part of the broader economy. For now, this is one sector that appears to be doing okay.
The other item worth watching is rising costs. Geopolitical issues, tariffs, interest rates, and changes in global supply chains can all influence what manufacturers pay for materials and other inputs. The increase in the Prices Index may be one indication that some of those pressures are showing up in the manufacturing sector.
For those of us simply trying to understand where the economy is headed, the lesson is fairly simple: manufacturing looks reasonably strong, but costs deserve a little attention. As always, keep watching the numbers—because the economy rarely sits still long enough for us to catch our breath.
U.S. Manufacturing Expands for Ninth Consecutive Month in September 2026
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The ISM Manufacturing PMI registered 54.5% in September, slightly below August’s 54.6%, indicating continued expansion in the manufacturing sector.
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New orders increased to 55.3%, up from 53.7% in August, marking the ninth consecutive month of expansion in new orders.
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Production remained strong at 56.7%, although it declined from 58.3% in August. Backlog orders increased significantly to 56.4%, suggesting continued demand for manufactured goods.
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Employment improved, with the Manufacturing Employment Index rising to 52.7% from 51.2%, indicating manufacturing employment was expanding during September.
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A concern is rising input costs. The Prices Index jumped to 77.9% from 71.1%, indicating substantially stronger price pressures for manufacturers and potentially higher costs moving through supply chains.
Institute for Supply Management. (2026, October 1). Manufacturing PMI® at 54.5%; September 2026 ISM® Manufacturing PMI® report. PR Newswire. PR Newswire article
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