U.S. September manufacturing PMI hits a three-year high

In September, the growth of U.S. manufacturing accelerated, with the PMI reaching its highest level since May 2022. A surge in new orders prompted factories to increase production and hire more workers, leading to a rise in order backlogs and suppliers becoming increasingly busy.

Despite a decline in export orders, increased safety stock supported demand. Economic growth accelerated, hiring increased, and prices rose, leading the market to speculate that the Federal Reserve may raise interest rates further.