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ISM: US manufacturing growth slows again in August

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ISM: US manufacturing growth slows again in August

Decrease in activity disappoints.

According to the widely watched Manufacturing ISM Report on Business, economic activity in the manufacturing sector expanded in August for the 32st consecutive month. However, the pace of growth slowed during the month.

Analysts had expected the PMI to fall slightly to 52.6%.

The August PMI registered 51.1%, a decrease of 1.6 percentage point over the July reading of 52.7%.  (Results over 50% indicate expansion.)

Analysts had expected the PMI to fall slightly to 52.6%.

The New Orders Index registered 51.7%, a decrease of 4.8 percentage points from July. The Production Index came in at 53.6%, 2.4 percentage points below the July reading of 56.0%.

The employment picture took a hit as well, with the Employment Index coming in at 51.2%, 1.5 percentage points below July’s 52.7%.

Prices for raw materials continued their slide, with the Prices Index decreasing 5 percentage points to 39% - the 10th consecutive month of decreases.

Finally, the New Export Orders Index registered 46.5%, down 1.5 percentage points from the July reading of 48%.

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, noted that “Comments from the panel reflect a mix of modest to strong growth depending upon the specific industry, the positive impact of lower raw materials prices, but also a continuing concern over export growth."

 

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