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US ISM manufacturing PMI stays in expansion as orders cool
The August survey showed new orders slipping to 53.7 and imports falling to 52.5, while price pressures stayed elevated with the prices index at 71.1.
The US manufacturing sector remained in expansion in August, with the headline ISM manufacturing PMI edging down to 54.6 from 55.6 in July, according to Action Forex. The reading stayed above the expansion threshold for an eighth straight month, though it came in below the 55.2 consensus.
Demand lost momentum in the survey details, with new orders dropping 3.0 points to 53.7 and backlogs falling 3.2 points to 51.8, even as both components continued to expand. Customer inventories rose 2.1 points to 42.8 but remained low, leaving room for replenishment.
Production was the report’s strongest area, with the production index ticking down just 0.2 points to 58.3. Employment growth cooled but stayed positive, falling 1.6 points to 51.2 from 52.8.
Input cost inflation remained a key theme, as the prices index was unchanged at 71.1, indicating broad and persistent increases in manufacturers’ input costs. Action Forex also pointed to weaker trade flows, with imports dropping 3.2 points to 52.5 and supplier deliveries rising 0.4 points to 59.3, alongside ongoing supply chain disruption cited by respondents.