Tempe’s ISM says US manufacturing activity edges higher in August

by   |  VIEW 852

Tempe’s ISM says US manufacturing activity edges higher in August

Institute of Supply Management (ISM), the Tempe, Arizona-headquartered world’s largest and oldest supply management association having had over 50,000 members around the globe, said on Wednesday that US manufacturing activity had edged higher last month in context of a robust build-up in new orders for US-borne goods, however, a gauge of US factory employment tumbled to a nine-month low, echoing a latest cohort of a caustic labour shortage.

In the matter of the fact, ISM also had indicated that its index for US manufacturing activity, accountable for roughly a 11.9 per cent of entire US economic activity, rose tentatively last month, surprisingly beating an analysts’ estimate, as manufacturing activities held back across the globe amid a rotation off demands towards services from goods following a robust reopening of major G20 economies.

On top of that, the ISM report had illustrated that an uptick in factory activities last month, had been largely driven by a marginal rise in demands stemming from businesses’ push to pile up stocks following a robust first half of the year.

US manufacturing activity picks up in August

According to Institute of Supply Management (ISM), the Tempe-based supply management association’s index for US manufacturing activity rose to 59.9 in August following a figure of 59.5 a month earlier.

A reading above 50.0 indicates growth, while a figure below 50.0 signals a contraction. However, a gauge of factory employment had tumbled to its lowest level since November, signalling a potential risk in job growth in August ahead of a much-anticipated US nonfarm payroll data scheduled to be released later this week.