ISM Manufacturing PMI Remains In Contraction Territory
- ISM Manufacturing PMI grew from 46.4 in July to 47.6 in August.
- New Orders index increased from 47.3 to 46.8.
- Employment index improved from 44.4 to 48.5.
On September 1, the Institute for Supply Management released ISM Manufacturing PMI report for August. The report indicated that ISM Manufacturing PMI increased from 46.4 in July to 47.6 in August, compared to analyst consensus of 47. Numbers below 50 show contraction.
The Institute for Supply Management commented: “The U.S. manufacturing sector shrank again, but the uptick in the PMI indicates a slower rate of contraction. The August composite index reading reflects companies managing outputs appropriately as order softness continues, but the month-over-month increase is a sign of improvement.”
Today, traders also had a chance to take a look at the final reading of the S&P Global Manufacturing PMI report for August. The report indicated that S&P Global Manufacturing PMI declined from 49 in July to 47.9 in August, compared to analyst consensus of 47.
U.S. Dollar Index gained ground after the release of the better-than-expected ISM Manufacturing PMI report. Treasury yields are moving higher, providing additional support to the American currency.
Gold pulled back towards the $1940 level as traders focused on stronger dollar and rising Treasury yields. The ISM report served as an additional negative catalyst for gold markets.
SP500 settled near the 4530 level. Major indices are moving higher as traders bet that Fed will not raise rates this year.
For a look at all of today’s economic events, check out our economic calendar.