U.S. Manufacturing Index Pulls Back Slightly More Than Expected In August
(RTTNews) - A report released by the Institute for Supply Management on Tuesday showed a modest slowdown in the pace of growth in U.S. manufacturing activity in the month of August.
The ISM said its manufacturing PMI dipped to 54.6 in August from 55.6 in July, although a reading above 50 still indicates growth. Economists had expected the index to edge down to 55.2.
The modest pullback by the manufacturing PMI came a month after it reached its highest level since hitting 55.9 in May 2022.
The report showed notable declines by the new orders and backlog of orders indexes, with the new orders index falling to 53.7 in August from 56.7 in July and the backlog of orders index sliding to 52.5 in August from 55.7 in July.
The employment index also decreased to 51.2 in August from 52.8 in July, suggesting a slowdown in the pace of job growth in the manufacturing sector.
Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, noted the only one of the five subindexes that make up the PMI that grew faster than last month was the supplier deliveries index.
The supplier deliveries index crept up to 59.3 in August from 58.9 in July, pointing to a continuing slowdown of the supply chain.
The ISM also said the prices index registered 71.1 percent in August, the same as in July, indicating raw materials prices increased for the 23rd straight month.
On Thursday, the ISM is scheduled to release a separate report on service sector activity in the month of August. The services PMI is expected to inch up to 54.3 in August from 54.1 in July.
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