🇺🇸❗️ Cable FX Macro Weekly Note: ISM September Mfg PMI

**As seen in Risk In The Week report 09/29/23, subscribe at cablefxm.co.uk/reports

August manufacturing index rebounded to 47.6 from prior 46.4, the figure surprised estimates of 47.0 and came to confirm a bottom in recent manufacturing sector weakness. The development is interesting as this part of the economy is relatively more sensitive to high interest rates than the services sector. A notable increase was seen in production, which is back at 50.0 as the broad index rises to the highest level since February. However, the largest rise was recorded in the prices paid component, the month saw a 5.8 point move to 48.4, this is now above its 6-month average. Supplier deliveries rose to 48.6, highest level since September 2022.

Economists at Wells Fargo said that they expect the sector to remain under pressure on higher real interest rates, they pencilled the index at 47.4 in September. On services, Wells Fargo said that the index suggests upside risks to inflation. The desk at CIBC noted mixed readings from regional activity data in the month, they added that this would leave the survey in contraction territory but unchanged from prior.