Economic activity in US manufacturing sector grows in Aug: ISM

06 Sep '21

2 min read

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Economic activity in the US manufacturing sector grew in August, with the economy notching a 15th consecutive month of growth, says the latest Manufacturing ISM Report on Business released by the Institute for Supply Management based in Tempe, Arizona. The August manufacturing purchasing managers’ index (PMI) was 59.9 per cent, a rise of 0.4 percentage point from the July reading of 59.5 per cent.

This figure indicates expansion in the overall economy for the 15th month in a row after contraction in April 2020.

New orders and production are growing; employment is contracting; supplier deliveries are slowing at a slower rate; backlog is growing; raw materials inventories are growing; prices are rising; and exports and imports are growing in the United States, ISM said in a press release.

The new orders index registered 66.7 per cent, increasing 1.8 percentage points from the July reading of 64.9 per cent. The production index registered 60 per cent, an increase of 1.6 percentage points compared to the July reading of 58.4 per cent.

The prices index registered 79.4 per cent, down 6.3 percentage points compared to the July figure of 85.7 per cent; this is its first reading below 80 per cent since December 2020 (77.6 per cent).

The backlog of orders index registered 68.2 per cent, 3.2 percentage points higher than the July reading of 65 per cent.

Fibre2Fashion News Desk (DS)

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