Manufacturing Growth Slows in August as Economic Concerns Loom: ISM
New orders slowed while the prices-paid gauge stayed at 71.1, suggesting factory inflation may remain above the Federal Reserve’s 2% target.
- The Institute for Supply Management reported on Tuesday its manufacturing PMI fell to 54.6 last month from 55.6 in July, marking the eighth consecutive month of expansion.
- Manufacturing, which accounts for about 9.4% of the economy, remains supported by an artificial intelligence buildout, though new orders slipped to 53.7 from 56.7 in July.
- The survey's supplier deliveries index increased to 59.3, while input prices remained unchanged at 71.1, suggesting inflation could stay above the Federal Reserve's 2% target.
- Fed Chairman Kevin Warsh said the central bank will "have work to do" if policymakers lack confidence that inflation is falling to the 2% target.
- Financial markets are pricing in a roughly 70% chance the Fed will raise its benchmark overnight interest rate by 25 basis points at its September 15-16 meeting, according to CME Group's FedWatch tool.
27 Articles
27 Articles
US Manufacturing Activity Expands for 8th Straight Month, Report Says
U.S. manufacturing activity expanded for the eighth consecutive month in August, a major trade association said. According to a Sept. 1 report by the Institute for Supply Management, last month’s manufacturing purchasing managers’ index (PMI)—a monthly survey that reflects the industry’s prevailing economic direction—came in at 54.6, from July’s four-year high of 55.6. This came in slightly below the market estimate of 55.2. Despite August’s mod…
US manufacturing activity slows in August; input prices still elevated
The Economic Times
Times of IndiaUS manufacturing growth cools in August as input prices stay high
U.S. manufacturing activity cooled off in August after a period of strong expansion, with new orders experiencing a decline. Input prices remained high due to continued supply chain pressures. Employment in factories also decreased, but there was a mild uptick in export orders. Supplier deliveries were slower, highlighting ongoing supply constraints and high inflation, prompting financial markets to brace for a possible Federal Reserve interest …
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