Manufacturing Sample Slowest Since October 2013

Monthly growth in Markit's manufacturing PMI sample is at its slowest since October 2013, at a much lower-than-expected 52.9 in the flash for August. A slowing in production growth pulled the index down as did moderation in what is still described, however, as solid growth in new orders. But export sales remain subdued and capital spending in the energy sector remains weak. Growth in hiring is the weakest since July last year. This report follows mixed signals from yesterday's Philly Fed, which was solid, and Monday's Empire State which was a disaster. Today's report is also mixed with broadly weak indications offset by the continued strength in domestic orders. Next indications on August factory conditions will be Tuesday with the Richmond Fed.

Recent History Of This Indicator: The manufacturing PMI is expected to signal slight acceleration in August, to 54.2 from July's 53.8. The July report noted that manufacturers are focusing their efforts more on the domestic market and less on exports, the result of weak foreign demand together with the effects of the strong dollar.