Manufacturing PMI remains weak, below consensus

The latest Manufacturing ISM Report reveals that economic activity in the U.S. manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the last 22 months. The Manufacturing PMI rose slightly to 47.2 percent in August from 46.8 percent in July, but still indicates contraction in the sector. Key indicators such as New Orders and Production also showed continued decline, with the New Orders Index falling to 44.6 percent and the Production Index to 44.8 percent. The Prices Index increased to 54 percent, suggesting rising input costs, while the Employment Index improved to 46 percent, though it still indicates job losses in the sector. Supplier Deliveries slowed, and inventory levels increased slightly, reflecting ongoing supply chain challenges. Overall, the data underscores ongoing difficulties in the manufacturing sector, with weak demand and slowing growth in key areas like exports and imports.