S&P Global Market Intelligence chief business economist Chris Williamson said US manufacturing accelerated in September, with the PMI at its highest level since May 2022. A surge in new orders drove sharp increases in output and employment; backlogs climbed and suppliers grew busier, signalling capacity is tightening.

Machinery investment and production were especially strong, often linked to rising AI-related spending. Export orders continued to fall, but precautionary inventory rebuilding amid price and supply concerns is supporting demand.

With demand outstripping supply and oil prices elevated, inflationary pressure remains a key risk, and faster growth, stronger hiring and higher price measures will intensify market expectations of further Fed rate hikes.