Back to Reports

Macro Flash Report

Manufacturing PMIs

Takeaway:

Yesterday’s first of the month data provided an update on manufacturing activity. As we anticipated, given the soft Regional FED Manufacturing surveys throughout the month of August, both Manufacturing PMI’s (ISM & S&P Global) remain in contraction territory. Elevated borrowing costs and election uncertainty continue to stand in the way of a full recovery.

ISM & S&P Global US Manufacturing PMI

ISM Manufacturing PMI inched up to 47.2 from July’s low of 46.8, slightly missing market expectations of 47.5. This marks the fifth consecutive month of contraction and continues a broader trend of contraction observed in 21 of the last 22 months.

  • New orders: Declined to 6, down from 47.4, marking the third consecutive decrease.
  • Production: Contracted further, falling to 8 from 45.9.
  • Employment: Fell for the third straight month to 46, though at a slower pace compared to the previous month.
  • Prices: Rose at a faster pace, with the index increasing to 54.0 from 52.9.
  • Supplier Deliveries: Slowed with an index reading of 50.5, down from 52.6 in July.

S&P Global US Manufacturing PMI revised lower to 47.9 from the preliminary estimate of 48, and continuing deterioration from July’s 49.6.

  • New orders: Decreased for the second month, reflecting weakening demand.
  • Production: Declined for the first time in seven months, with the output index falling as sales continued to drop.
  • Employment: Recorded a renewed reduction amid spare capacity, as staffing levels fell.
  • Prices: Input costs rose at the fastest pace in 16 months, with output prices also increasing.
  • Supplier Delivery Times: Shortened for the first time in three months, reflecting decreased input demand.