by Bill McBride on 9/01/2011 10:00:00 AM
Thursday, September 01, 2011
PMI was at 50.6% in August, down from 50.9% in July. The employment index was at 51.8%, down from 53.5%, and new orders increased to 49.6%, up from 49.2%.
From the Institute for Supply Management: August 2011 Manufacturing ISM Report On Business®
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI registered 50.6 percent, a decrease of 0.3 percentage point from July, indicating expansion in the manufacturing sector for the 25th consecutive month, at a slightly slower rate. The Production Index registered 48.6 percent, indicating contraction for the first time since May of 2009, when it registered 45 percent. The New Orders and Backlog of Orders Indexes edged up slightly from July, but both indexes are indicating contraction in August at slower rates than in July. The rate of increase in prices slowed for the fourth consecutive month, dropping another 3.5 percentage points in August to 55.5 percent. The overall sentiment is one of concern and caution over the domestic and international economic environment, which is affecting customers' confidence and willingness to place orders, at least in the short term."Click on graph for larger image in new window.
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 48.5% and suggests manufacturing expanded - slowly - in August.
The regional surveys early in August were especially weak, but the surveys towards the end of the month were a little better - suggesting the debt ceiling debate impacted consumer and business confidence early in August.