US ISM Manufacturing PMI Dips to 54.5 in September as Input Prices Surge

US manufacturing expansion slowed slightly in September as the ISM Manufacturing PMI slipped to 54.5 from 54.6 in August, falling short of consensus estimates of 55.0. However, the prices paid index surged sharply to 77.9 from 71.1, beating expectations and reaching its highest level since May. The inflation signal drove US 30-year Treasury yields up 5.2 basis points to 5.69%, pressuring US equities including the S&P 500. Meanwhile, underlying demand indicators strengthened, with new orders rising to 55.3, employment advancing to 52.7, and order backlogs jumping to 56.4.