by Calculated Risk on 9/01/2021 10:04:00 AM
(Posted with permission). The ISM manufacturing index indicated expansion in August. The PMI(R) was at 59.9% in August, up from 59.5% in July. The employment index was at 49.0%, down from 52.9% last month, and the new orders index was at 66.7%, up from 64.9%.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management(R) (ISM(R)) Manufacturing Business Survey Committee:
“The August Manufacturing PMI(R) registered 59.9 percent, an increase of 0.4 percentage point from the July reading of 59.5 percent. This figure indicates expansion in the overall economy for the 15th month in a row after contraction in April 2020. The New Orders Index registered 66.7 percent, increasing 1.8 percentage points from the July reading of 64.9 percent. The Production Index registered 60 percent, an increase of 1.6 percentage points compared to the July reading of 58.4 percent. The Prices Index registered 79.4 percent, down 6.3 percentage points compared to the July figure of 85.7 percent; this is its first reading below 80 percent since December 2020 (77.6 percent). The Backlog of Orders Index registered 68.2 percent, 3.2 percentage points higher than the July reading of 65 percent. The Employment Index indicated contraction at 49 percent, 3.9 percentage points lower compared to the July reading of 52.9 percent. The Supplier Deliveries Index registered 69.5 percent, down 3 percentage points from the July figure of 72.5 percent. The Inventories Index registered 54.2 percent, 5.3 percentage points higher than the July reading of 48.9 percent. The New Export Orders Index registered 56.6 percent, an increase of 0.9 percentage point compared to the July reading of 55.7 percent. The Imports Index registered 54.3 percent, an 0.6-percentage point increase from the July reading of 53.7 percent.”
This was above expectations.
This suggests manufacturing expanded at a slightly faster pace in August than in July, but that employment contracted.