U.S. manufacturing showed a glimmer of resilience in August, marking its first uptick in five months., according to the latest Manufacturing ISM Report on Business. However, the increase fell short of expectations, reflecting continued challenges in the sector.
By the numbers:
- Manufacturing PMI: Rose to 47.2% in August, a 0.4 percentage point increase from July’s 46.8%. While still below the 50% threshold that indicates expansion, this is the first rise since March.
- Employment: Improved to 46 points from 43.4 in July, ending a three-month decline.
- New Orders: Slipped to 44.6, down from 47.4 in July, hitting the lowest level since May 2023.
- Prices: Climbed to 54 points, up from 52.9 in July, marking the third consecutive monthly increase.
What they’re saying: “While still in contraction territory, U.S. manufacturing activity contracted slower compared to last month,” said Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty.”
The bottom line: Despite the modest rise in manufacturing activity, the sector remains under pressure. Persistent challenges, including weak demand and cautious investment, continue to weigh on the industry’s recovery.
