US Factory Activity Shrinks in August: ISM

The Institute for Supply Management’s Manufacturing PMI came in at 49.4 in August of 2016, down from 52.6 in July. The figure came much worse than market expectations of 52, reaching the lowest in seven months, as new orders, production and employment all contracted.
ISM | Joana Taborda | 9/1/2016 3:06:14 PM
The New Orders Index registered 49.1 percent, a decrease of 7.8 percentage points from the July reading of 56.9 percent. 

The Production Index registered 49.6 percent, 5.8 percentage points lower than the July reading of 55.4 percent. 

The Employment Index registered 48.3 percent, a decrease of 1.1 percentage points from the July reading of 49.4 percent.

Inventories of raw materials registered 49 percent, a decrease of 0.5 percentage point from the July reading of 49.5 percent. 

The Prices Index registered 53 percent, a decrease of 2 percentage points from the July reading of 55 percent, indicating higher raw materials prices for the sixth consecutive month. 

Of the 18 manufacturing industries, six are reporting growth in August in the following order: Printing & Related Support Activities; Nonmetallic Mineral Products; Computer & Electronic Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Chemical Products. The 11 industries reporting contraction in August — listed in order — are: Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Plastics & Rubber Products; Furniture & Related Products; Transportation Equipment; Machinery; Textile Mills; Paper Products; Petroleum & Coal Products; Primary Metals; and Fabricated Metal Products.

US Factory Activity Shrinks in August: ISM