The New York City skyline in the United States

United States PMI August 2020

United States: ISM manufacturing index hits near two-year high in August

The Institute for Supply Management (ISM) manufacturing index increased from 54.2 in July to 56.0 in August, beating market expectations of 54.5 and marking the highest reading since November 2018. Consequently, the index moved further above the 50-threshold that separates expansion from contraction in the manufacturing sector.

August’s result was driven by a surge in new orders—which hit a 16-year high—and a stronger expansion in production, while employment improved slightly—but continued to point to a deterioration. Moreover, new export orders and backlogs of work also expanded in August relative to July.

Commenting on recent developments in the manufacturing sector with regards to August’s print, analysts at Goldman Sachs, noted:

“The composition of the report was strong, with increases in each of the three key components. Construction spending increased in July, and growth in June and May was revised up. We left our Q3 GDP tracking estimate unchanged on net at +30% [saar]. Our preliminary August Current Activity Indicator now stands at +1.3% (vs. +2.0% in July).”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest