US Manufacturing Stays Flat For August

Manufacturing in India remains Strong at 56.2 percent

The Institute for Supply Management® (ISM®) reported an August Manufacturing PMI® of 52.8 percent for U.S. manufacturers. The new figure matches the same reading as recorded in July and indicates expansion in the overall economy for the 27th month in a row after a contraction in April and May 2020. For a second straight month, the Manufacturing PMI® figure is the lowest since June 2020, when it registered 52.4 percent. The New Orders Index registered 51.3 percent, 3.3 percentage points higher than the 48 percent recorded in July. The Production Index reading of 50.4 percent is a 3.1-percentage point decrease compared to July’s figure of 53.5 percent. The Prices Index registered 52.5 percent, down 7.5 percentage points compared to the July figure of 60 percent; this is the index’s lowest reading since June 2020 (51.3 percent). The Backlog of Orders Index registered 53 percent, 1.7 percentage points above the July reading of 51.3 percent.

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US Manufacturing PMI Stays in Growth Territory for July

India, China and the UK also register above 50 percent for manufacturing PMI

The July ISM® Report On Business® gave a PMI reading of 52.8 percent for US manufacturers which was down from the June figure of 53.0 percent. This continued an overall downward trend for US manufacturing that dates back to October 2021. However, the reading meant the US sector stayed above the 50 percent line for the 26th straight month.

“Manufacturing performed well for the 26th straight month. There are signs of new order rates softening — cited in 16 percent of general comments, compared to 17 percent in June — as panelists are increasingly concerned about excessive inventories and continuing record-high lead times. Employment activity remained strongly positive in spite of the uncertainty with new order rates,” says Timothy R. Fiore, Chair of the ISM® Manufacturing Business Survey Committee.

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US Manufacturing Pushes Up In May

The May PMI for US Manufacturers was reported at 56.1 percent in the latest ISM® Report On Business®. The figure was up from the April reading of 55.4 percent and ended a three-month downward trend. The figure also indicates a 24th straight month of expansion for the overall US economy after the contraction in 2020 sparked by the pandemic.

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US Manufacturing Still Strong Despite Challenges

The March PMI for US Manufacturers was reported at 57.1 percent in ISM’s® March Report On Business®. The figure was down 1.5 percentage points from the February reading of 58.6 percent and the lowest reading for the index since September of 2020. However, the figure still indicates a 22nd straight month of expansion for the overall US economy.

“The US manufacturing sector remains in a demand-driven, supply chain-constrained environment,” says Timothy R. Fiore, Chair of the ISM® Manufacturing Business Survey Committee.  “In March, progress was made to solve the labor shortage problems at all tiers of the supply chain, which will result in improved factory throughput and supplier deliveries. Panelists reported lower rates of quits and early retirements compared to previous months, as well as improving internal and supplier labor positions.”

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US Factory Activity Dips in January

Despite a 20-month streak of growth for the overall economy, ISM’s® January Report On Business® showed a 1.2 percent drop to a PMI of 57.6 percent for US manufacturers. While still in positive territory, the figure was the second straight month to register a decline and it also represented the lowest mark since November 2020.

“Manufacturing performed well for the 20th straight month, with demand and consumption registering month-over-month growth,” says Timothy R. Fiore, Chair of the ISM® Manufacturing Business Survey Committee. “Meeting demand remains a challenge, due to hiring difficulties and labor turnover at all tiers. For the third month in a row, Business Survey Committee panelists’ comments suggest month-over-month improvement on hiring, offset by backfilling required to address employee turnover at a higher rate, supplier performance and improvements in the transportation sector.”

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US Manufacturers See 2.4 Percent PMI Decline for December

ISM® has reported December Manufacturing PMI® of 58.7 percent for US manufacturers, a decrease of 2.4 percentage points from the November reading of 61.1 percent. This figure indicates expansion in the overall economy for the 19th month in a row after a contraction in April 2020.

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Global PMI Readings Show Decline in August

With many regions experiencing supply chain issues and labor shortages, most of the global manufacturing countries tracked by Brushware saw a decline in PMI readings for August compared to July. Italy was the only country that showed an improved PMI reading. Despite the challenges, business optimism remained strong across most of the regions and countries tracked.

GERMANY: IHS Markit/BME reported a 62.6 percent August PMI for German manufacturers for a 3.3 percent drop from the previous month. Supply shortages caused output to significantly fall behind new orders. Increasing price pressure reduced business optimism, but employment rose for a sixth straight month as manufacturers looked to expand capacity. 

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ISM Reports Uptick For US Manufacturers

Overall US Economy Has 15th Consecutive Month of Growth

ISM® is reporting a manufacturing PMI® of 59.9 percent for US manufacturers for the month of August  an increase of 0.4 percentage points from the July reading of 59.5 percent. Despite the improvement, ISM panelists from the report say their companies and suppliers continue to struggle at unprecedented levels to meet increasing demand.

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