Raw material price index soars to 77.9... Increased cost burden

U.S. manufacturing activity continued to expand for the ninth straight month in September, but the pace of growth slowed slightly.

The Institute for Supply Management (ISM) announced on the 1st (local time) that the September manufacturing purchasing managers' index (PMI) recorded 54.5, down 0.1 point from the previous month.

It has remained in a growth phase for nine months since last January, exceeding 50, the baseline that separates economic expansion from contraction.

It is analyzed that investment in artificial intelligence (AI) infrastructure, robust domestic demand, and defense spending are supporting the manufacturing industry.

However, while strong demand continues, the cost burden on manufacturers appears to have increased due to rising energy prices and supply chain bottlenecks.

The price index, which indicates the cost burden of manufacturers, rose 6.8 points to 77.9 from the previous month's 71.1.