U.S. ISM manufacturing index likely to have remained unchanged in September

U.S. ISM manufacturing index is expected to have stayed almost the same in September. The index had dropped in August to 49.4 from 52.6 in July after five straight months above the breakeven. The August print was the weakest reading since January. The sluggishness in several regional factory surveys in August indicated the decline in the national measure. Admittedly, the average ISM-adjusted reading of five regional factory indices dropped from to 49 in August from 50.3 in July.

The regionals moved in the opposite directions in September, stated Societe Generale in a research note. For instance, the ISM-adjusted Empire State index dropped five points to 45, the worst print since January, whereas the ISM-adjusted Philadelphia measure fell to 45.2. On the contrary, the Kansas City Fed measure rose to 52.1 from 47.7, whereas the Dallas Fed survey climbed to 51.8. The Richmond measure was little changed at 50.5.

In September, the average of all five factory surveys remained at 48.9, unchanged from August. Therefore, the national factory conditions are expected to have stayed stagnant in September. The ISM index is likely to have come in at 49.3, according to Societe Generale.