Composite PMI Drops To 54.4, Exceeding Analyst Expectations

On September 23, 2024, S&P Global released PMI reports for September. Manufacturing PMI declined from 47.9 in August to 47.0 in September, compared to analyst consensus of 48.5. Numbers below 50 show contraction.

According to the report, the largest negative contribution to the Manufacturing PMI came from new orders, which declined at the fastest rate since December 2022.

Services PMI decreased from 55.7 to 55.4, mostly in line with analyst consensus of 55.3. Composite PMI pulled back from 54.6 to 54.4, compared to analyst forecast of 54.3.

The report showed that the services sector continued to grow at a solid pace, while the manufacturing sector remained under pressure. The strong performance of the services sector provided material support to Composite PMI, which exceeded analyst expectations.

S&P Global commented: “The early survey indicators for September point to an economy that continues to grow at a solid pace, albeit with a weakened manufacturing sector and intensifying political uncertainty acting as substantial headwinds.”

U.S. Dollar Index moved higher as traders reacted to the better-than-expected Composite PMI report. Currently, U.S. Dollar Index is trying to settle above the 100.90 level.

Gold tested historic highs above the $2630 level as the rally continued. Gold traders stay bullish and ignore U.S. dollar’s rebound.

SP500  remained stuck near the 5725 level after the release of PMI reports. It remains to be seen whether solid PMI data will provide material support to SP500 in today’s trading session.

For a look at all of today’s economic events, check out our economic calendar.