Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

U.S. ISM manufacturing index rises above expectations in August

U.S. ISM manufacturing index rose in August, coming in above consensus expectation. The index rose from 58.1 to 61.3. The rise was mainly driven by production and new orders. The production index rose 4.8 points to 63.3, while the index of new orders rose 4.9 points to 65.1. The jump in new orders seems to have been driven by domestic demand, as export orders fell for the second straight month. This possibly reflects the rise in U.S. protectionism. Also, pointing to this is the fall in imports in August.

In the meantime, the employment index rose 2 points in August and has stayed fairly solid since May, implying that hiring intentions in the manufacturing sector remain healthy for now, noted Barclays in research report.

Meanwhile, the index on prices paid dropped, but continues to be elevated compared with last year, pointing to higher input costs. The press release stated that respondents are “again overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations.”  However, in spite of concerns over U.S. protectionist policies, manufacturing sentiment continues to be on a strong fooling, underpinned in large part by firm domestic demand.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 103.945. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.