Prelim was 48.0July final was 46.8Production declines for first time in 7 monthsNew orders fall at fastest pace since June 2023Employment drops for first time this yearInput cost inflation accelerates to 16-month high
The ISM manufacturing report is due at the top of the hour.
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence, said:
“A further downward lurch in the PMI points to the
manufacturing sector acting as an increased drag on the
economy midway through the third quarter. Forward-
looking indicators suggest this drag could intensify in
the coming months.
“Slower than expected sales are causing warehouses
to fill with unsold stock, and a dearth of new orders
has prompted factories to cut production for the first
time since January. Producers are also reducing payroll
numbers for the first time this year and buying fewer
inputs amid concerns about excess capacity.
“The combination of falling orders and rising inventory
sends the gloomiest forward-indication of production
trends seen for one and a half years, and one of the most
worrying signals witnessed since the global financial
crisis.
“Although falling demand for raw materials has taken
pressure off supply chains, rising wages and high
shipping rates continue to be widely reported as factors
pushing up input costs, which are now rising at the
fastest pace since April of last year.”
This article was written by Adam Button at www.forexlive.com.
