Concurrently, strong demand intensified supply chain bottlenecks and renewed cost pressures across the manufacturing base. Input purchasing surged at its fastest pace since May 2022 to keep up with production schedules, nearly halting a 44-month run of pre- and post-production inventory depletion. However, input cost inflation accelerated to a three-month high due to climbing energy prices alongside elevated costs for raw materials, transport, and electronic components. In response, factories raised output charges at a three-month high to pass expenses along to clients, while delivery lead times continued to lengthen amid persistent shipping delays and component shortages.
Key Bullet Points
- Expansion Holds Firm: Headline PMI stood at 53.9, down slightly from August's 54.3 but safely above the 50.0 growth mark.
- Demand & Capacity Squeeze: A 4th straight monthly rise in new orders caused factory backlogs to accumulate at their steepest rate since April 2022.
- Workforce Stabilization: Driven by mounting backlogs, job cuts slowed to their lowest rate in three years, approaching employment stability.
- Inflationary Rebound: Driven by elevated energy, transportation, and component costs, input inflation hit a 3-month high, prompting higher factory gate prices.