US Factory Growth Highest since 2004: ISM


The Institute for Supply Management’s Manufacturing PMI in the US jumped to 61.3 in August of 2018 from 58.1 in the previous month, beating market expectations of 57.7. The reading pointed to the highest expansion in factory activity since May of 2004 amid faster increases in new orders, production, employment and inventories and lower inflationary pressures. However, manufacturers remain overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations.

Faster increases were seen in new orders (65.1 from 60.2); production (63.3 from 58.5); employment (58.5 from 56.5); inventories (55.4 from 53.3) and backlogs of orders (57.5 from 54.7). Also, new export orders rose slightly less (55.2 from 55.3), supplier deliveries softened (64.5 from 62.1) and price pressures slowed (72.1 from 73.2). 

Of the 18 manufacturing industries, 16 reported growth in August, in the following order: Computer & Electronic Products; Apparel, Leather & Allied Products; Textile Mills; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; and Printing & Related Support Activities. The two industries reporting contraction in August are: Wood Products; and Primary Metals.

US Factory Growth Highest since 2004: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
9/4/2018 2:10:32 PM