United States: U.S. manufacturing sector contracts in August for first time in six months
September 2, 2016
The ISM manufacturing index declined more than expected in August and entered into contractionary territory for the first time since February. The indicator fell from 52.6 in July to 49.4 in August and came in below market expectations of 52.5. This brought the ISM index below the 50-threshold that indicates an expansion.
The underlying details show a broad-based deterioration. New orders dropped to an eight-month low in August and manufacturing output plunged to the lowest level in four years. Furthermore, employment and supply deliveries decreased compared to the previous month. Inventories’ levels remained virtually unchanged over the previous month.
Author: Ricardo Aceves, Senior Economist