US ISM Manufacturing PMI was unchanged at 52.8 in August, slightly above expectation of 52.6. Looking at some details, new orders rose from 48.0 to 51.3. Production dropped from 53.5 to 50.4. Employment jumped from 49.9 to 54.2. Prices dropped sharply from 60.0 to 52.5.
ISM said: “Manufacturing performed well for the 27th straight month. With (1) supplier delivery performance recording its fourth straight month of improvement, (2) price increase growth slowing significantly for the second consecutive month, (3) hiring and total employment both positive and expanding and (4) lead times easing across all three categories of purchasing activity, the sector is at or approaching supply/demand equilibrium.”
Also, “the past relationship between the Manufacturing PMI and the overall economy indicates that the Manufacturing PMI for August (52.8 percent) corresponds to a 1.4-percent increase in real gross domestic product (GDP) on an annualized basis.”