US ISM Manufacturing dropped to 49.1 in August, down from 51.2, below expectation of 51.3. The contractionary reading indicated the end of expansion that spanned 34 months. Looking at the details, new orders dropped to 47.2, down from 50.8. Production dropped to 49.5, down from 50.8. Employment also dropped to 47.4, down from 51.7.
ISM also noted: “Respondents expressed slightly more concern about U.S.-China trade turbulence, but trade remains the most significant issue, indicated by the strong contraction in new export orders. Respondents continued to note supply chain adjustments as a result of moving manufacturing from China. Overall, sentiment this month declined and reached its lowest level in 2019.”
