Sept manufacturing PMI unchanged from August; MPC may cut rates further

On the prices front, input cost inflation moderated to one of the lowest rates seen in over a decade

The manufacturing sector continued to tell a muted growth story in September. The IHS Markit purchasing managers’ index (PMI) survey showed that at 51.4, growth in manufacturing activities was unchanged from August — when it posted a 15-month low.

In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. The September reading is its lowest since May 2018.

“Public policy stimulus could potentially help the sector gain growth momentum, such as another reduction in the benchmark interest rate and the recent announcement of cuts to corporate taxes,” said Pollyanna de Lima, Principal Economist at IHS Markit.

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