U.S. regional manufacturing gauges likely improved in August

Canvasses of local manufacturers conducted by purchasing manager groups in Chicago and Milwaukee and the Federal Reserve Bank of Dallas will provide additional color on business activity in August and will allow us to finalize our projection for the Institute for Supply Management's (ISM) national re port. All three gauges are expected to improve on their July readings during the reference period. Supported by positive developments in the automotive industry, the Chicago Business Barometer probably climbed by 2.8 points to a seven-month high of 57.5. 

"Factory activity likely stabilized in the Milwaukee area in August, leaving the composite gauge at 50.0 and ending the modest contraction that began in April. Although a reversal could be in order on the heels of the latest falloff in petrole um price s, the Dallas Fe d's general business activity measure probably rose to 0 .5% - the first positive print since last December", states Societe Generale in a research note on Monday.