NEW YORK, Sept. 23 (UPI) -- U.S. manufacturing activity showed continued business growth in September, but at a slower pace than August, a report from Markit Economics said.
In a preliminary estimate of the U.S. purchasing managers index for manufacturing was posted as 52.8, down slightly from the 53.1 reading in August.
The preliminary estimate can be revised later. In the current report, Markit said a slowdown in new orders contributed to the slowdown in the headline index.
The new orders index fell from 55.7 in August to 52.7, Markit said.
The production index rose in the month, climbing from 52.5 to 55.3. The new export orders index, however, dropped under 50, moving from 52 to 49.1, which indicates it moved from expansion to contraction.
The index noting the number of employees moved lower, but continued to indicate growth, sliding from 53.1 to 51.4.
"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," said Markit Chief Economist Chris Williamson.
"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," he said.