ISM reported that the August Manufacturing PMI was 52.8%, the same as July’s reading. While this remains the lowest reading since June 2020, any number above 50% indicates expansion. The overall economic activity in the manufacturing sector grew for the 27th consecutive month.
Here is the breakdown of the August PMI:
- New Orders Index: 51.3%, a 3.3 percentage point increase month-over-month
- Production Index: 50.4%, a 3.1 percentage point decrease month-over-month
- Prices Index: 52.5%, a 7.5 percentage point decrease month-over-month
- Backlog of Orders Index: 53%, a 1.7 percentage point increase month-over-month
- Employment Index: 54.2%, a 4.3 percentage point increase month-over-month
- Supplier Deliveries Index: 55.1%, a .1 percentage point decrease month-over-month
- Inventories Index: 53.1%, a 4.2 percentage point decrease month-over-month
- New Export Orders Index: 49.4%, a 3.2 percentage point decrease month-over-month
- Imports Index: 52.5%, a 1.9 percentage point decrease month-over-month
“The U.S. manufacturing sector continues expanding at rates similar to the prior two months. New order rates returned to expansion levels, supplier deliveries remain at appropriate tension levels and prices softened again, reflecting movement toward supply/demand balance. Sentiment remained optimistic regarding demand, with five positive growth comments for every cautious comment,” Timothy R. Fiore, ISM Chairman, said.
August saw growth in 10 manufacturing industries, including:
- Nonmetallic Mineral Products
- Petroleum & Coal Products
- Transportation Equipment
- Computer & Electronic Products
- Printing & Related Support Activities
- Plastics & Rubber Products
- Primary Metals
- Miscellaneous Manufacturing
- Food, Beverage & Tobacco Products
Wood Products, Apparel, Leather & Allied Products, Furniture & Related Products, Paper Products, Chemical Products, Fabricated Metal Products and Electrical Equipment, Appliances & Components all reported a decrease in August compared to July.