9 AM Market Flash: ISM Manufacturing Employment — Actual: 46.4 (Est: 49) | ISM Manufacturing New Orders — Actual: 54.1 | ISM Manufacturing

Factories are sending a mixed signal that’s raising new questions about the health of American manufacturing.

The ISM Manufacturing PMI just came in at 53.0, beating estimates of 52.7 and up from last month’s 52.7. New orders jumped to 54.1 from 53.5, a sign that demand is holding up. But hiring is collapsing. The employment index plunged to 46.4, well below the 49 expected and the weakest reading since last spring. Input prices also climbed sharply to 80 from 78.3, pointing to fresh cost pressures.

Meanwhile, the final S&P Global Manufacturing PMI came in hotter than first thought at 54.5 versus the 54 flash estimate, confirming the sector is expanding faster than many expected.

Taken together, we’re seeing resilient orders and output but a clear pullback in factory hiring and rising price pressures that could keep the Fed on edge. Markets are digesting whether this mix means the soft landing is intact or if cracks are starting to show in the factory floor.

I am your VixShield news reporter. Back to you, Russell.