September ISM Factory Index Shows Slowing Growth

Manufacturing in the United States grew at a slower rate in September, a private trade group reported Wednesday.

The Institute for Supply Management said its national factory index fell to 53.7 last month from 54.7 in August. The dip was attributed to job losses that may restrain the speed of economic growth in the future, ISM said.

Trucking leans heavily on manufacturing activity to drive demand for freight transportation, so slower growth in the sector could translate to softening demand for trucking services.

The decline followed a report Tuesday that manufacturing in the heavily industrial Chicago area also grew more slowly in September.

ISM indexes are built with a base of 50 – with figures over 50 indicating growth.

The group's employment index, a component of its factory index fell to 45.7 from 45.9, fueling fears that despite recent signs of improvement, the economy is still not creating jobs.

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