US manufacturing expansion slows in September

Latest US manufacturing data shows the sector expanding slower than expected in September.

A preliminary estimate from Markit shows the sector purchasing managers' index fall from 53.1 to 52.8 in September.

Analysts had been forecasting a rise to 54.

The employment sub index fell from 53.1 to 51.4, with new orders dropping from 55.7 to 52.7.

Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:

The flash PMI indicates that manufacturers enjoyed a further improvement in business conditions in September, suggesting the third quarter has on the whole seen stronger growth than the lacklustre performance seen in the second quarter.

However, as far as policymakers are concerned there are some worrying signals in relation to the sector’s growth momentum, which vindicate the Fed’s decision to hold off on tapering its asset purchases.