Economy
ISM: US Manufacturing Maintains Momentum in August
Written by David Schollaert
September 8, 2022
US manufacturing activity grew in August, expanding for the second straight month amid stronger order growth and employment, according to the Institute for Supply Management (ISM).
Supply bottlenecks and price pressures eased, while domestic factory activity grew steadily last month.
August’s Manufacturing PMI held at 52.8%, the same reading recorded in July. This is the lowest PMI figure recorded since June 2020. The sideways result in August marks the 27th consecutive month of expansion. Any index reading above 50% indicates growth in the manufacturing sector.
“The US manufacturing sector continues expanding at rates similar to the prior two months. New order rates returned to expansion levels, supplier deliveries remain at appropriate tension levels and prices softened again, reflecting movement toward supply/demand balance,” said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee.
Companies continued to hire at strong rates in August, with few indications of layoffs, hiring freezes, or head-count reductions through attrition, the report said.
Also of note, price expansion eased dramatically in August, which — when coupled with lead times easing — should bring buyers back into the market, improving new order levels.
Fiore commented, “sentiment remained optimistic regarding demand, with five growth comments for every cautious comment. Panelists continue to express unease about a softening economy… noting concern about order book contraction. Comments reflect growing worries about total supply chain inventory.”
An interactive history ISM Manufacturing Report on Business PMI index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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