U.S. Manufacturing Activity Shows Signs of Improvement in August
Handy Tech Group Inc.
Application & business problem solving experts of mechanical components sold to industrial OEM's in the Southeast
U.S. manufacturing activity contracted for a tenth straight month in August, according to the latest survey of purchasing executives from the Institute for Supply Management. While this represents the longest stretch of contraction since the 2008-2009 recession, the rate at which the sector is contracting continues to slow, and some key improvements in output and employment suggest brighter days ahead.
Key Takeaways from the ISM's Manufacturing Activity Report
The ISM reports its index of manufacturing activity edged up 1.2% to a reading of 47.6%, demonstrating that while the sector remains stuck in contraction, activity is declining at a slower rate compared to previous months.
Demand contracted at a slightly faster rate in August, down 0.5% to a reading of 46.8%. This followed a 1.7% increase in July and 3% increase in June.
Meanwhile, output improved significantly over the month, with the Production Index increasing 1.7% for a reading of 50%. The Employment situation also improved, with that index rising 4.1% to a reading of 48.5%.
Said Timothy Fiore, Chairman of the ISM, “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.”