US ISM Manufacturing PMI

The U.S. ISM manufacturing PMI edged up 0.4 pts to 47.2 in August. While that’s the first increase in five months, the gauge has held below the 50-mark (indicating shrinking activity) for most of the past two years. New orders fell again, down 2.8 pts to 44.6, the lowest level since May 2023. That, along with gauges for new export orders and backlog of orders, suggest that demand is slowing. This was also reflected in some of the comments: • “A noticeable slowdown in business activity. Staffing and production rationalization has been ...

U.S. factories remained in slowdown mode in August, fueling fears about where the economy is headed, according to separate manufacturing gauges. The Institute for Supply Management monthly survey of purchasing managers showed that just 47.2% reported expansion during the month, below the 50% breakeven point for activity. Though that was slightly above the 46.8% recorded for July, it was below the Dow Jones consensus call for 47.9%. “While still in contraction territory, U.S. manufacturing activity contracted slower compared to last ...

The U.S. is getting back into full swing today, after having a day off yesterday. The ISM Manufacturing PMI is expected to come out a bit higher than the previous one. Let's see.

Today's US data has come in on the softer side of expectations with the June ISM manufacturing index dipping to 48.5 from 48.7. The consensus was looking for a modest recovery to 49.1. This is the 19th sub-50 reading, thereby indicating contraction in the past 20 months, with only March breaking the trend with a 50.3 print. The chart below shows that the ISM indices used to be an excellent lead indicator for judging turning points in the economic cycle, but for now, the economy continues to perform strongly despite the apparent ...