New orders, at 51.7, are at one of the slowest rates of monthly growth of the recovery, since April 2013. Backlog orders, at 46.5, are in a third month of contraction. New export orders, at 46.5, are also in their third straight month of contraction and are at the lowest rate since July 2012.
ISM's sample wasn't hiring much in August, at 51.2 for a 1.5 point decline from July and the weakest reading since April. Production slowed and prices paid, at only a 39.0 level last since in March, points to deflationary pressures.
The good news for the economy is that this report failed to pick up the auto-led surge that lifted the factory sector noticeably in June and July. Still, the ISM is followed closely and will raise doubts, justifiably or not, over a September 17 rate hike.
Recent History Of This Indicator:
The ISM manufacturing index is not expected to show much change, at a modest 52.7 vs July's 52.8. This report, like the manufacturing PMI, never picked up the factory sector's auto-related surge during June and July. New orders were strong in July but not exports or employment.
The ISM manufacturing index is not expected to show much change, at a modest 52.7 vs July's 52.8. This report, like the manufacturing PMI, never picked up the factory sector's auto-related surge during June and July. New orders were strong in July but not exports or employment.
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