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US ISM manufacturing PMI slips to 54.6 in August
New orders dropped to 53.7 and employment eased to 51.2, while the prices index stayed elevated at 71.1.
US manufacturing growth slowed in August, with the ISM PMI Manufacturing index easing from 55.6 to 54.6, which is below the 55.3 consensus, even as the index remained in expansion for the eighth straight month. According to Action Forex, the production component held up better, edging down from 58.5 to 58.3.
The report also showed softer demand and labor momentum. New orders fell from 56.7 to 53.7, employment declined from 52.8 to 51.2, and the backlog of orders dropped from 55.0 to 51.8, while inventories slipped from 51.2 to 50.6.
ISM noted that the August headline reading has been historically consistent with around 2.4% annualized real GDP growth. Other indicators included a modest offset from new export orders, which rose from 53.0 to 53.2, and supplier deliveries increasing from 58.9 to 59.3.
Price pressures remained elevated despite the softer activity. Action Forex said the Prices Index was unchanged at 71.1, slightly below the 72 expected level, but still in increasing territory for the 23rd consecutive month.