US manufacturing ISM falls to 52.9 in Sept from 54.5 in Aug

US manufacturing sector growth slowed in September from the previous month, a key survey showed. The Institute of Supply Management's headline index of the sector eased to 52.9 from 54.5 in August. The drop confounds predictions of a rise to 56.0. There was a significant slowing down in the sub-indices measuring employment and inventories. Employment slipped to 49.4 from 54.0 in August, indicating that job levels contracted. "It's apparent that manufacturing is losing momentum and feeling the effects of higher interest rates and a weaker housing market," said Norbert J. Ore, chair of the ISM's manufacturing business survey committee.