On Tuesday, an ISM (Institute of Supply Management) survey for US factory activities had revealed that the US manufacturing activity PMI (Purchasing Managers’ Index) had expanded at its steepest pace since November 2018, suggesting a contrarian view to July FOMC minutes when a number of Fed policymakers including the Fed Chair Jerome Powell had raised fresh doubts over a solid path towards the US economic recovery.
Nonetheless, since the recessed US economy kept flabbergasting the Wall St. analysts with its maverick upswing in factory activities despite over 22 million in laid-off Americans, the ISM (Institute of Supply Management), had said in a statement earlier on the day that its survey for US manufacturing sector index had climbed to 56 last month compared to a reading of 54.2 a month earlier, marking up the index’s highest figure since the November of 2018 as beforementioned and the US manufacturing sector’s third straight month of gain against a growing number of odds.
US Factory activity beats forecast as pandemic paralyzed economy responds to stimulus
Aside from that, the ISM US Manufacturing Activity survey report released earlier on the day had also indicated that the Govt.
measures adopted to ramp up growth in an ailing US economy had borne fruits, as manufacturing grew intransigently for third straight month following a sweeping contraction in March, April and May, during the peak of pandemic outbreak in the United States.
Meanwhile, gawking towards a gloomier side of the coin, adding that a bottlenecked US economy had still not regained the footings lost in the spring, a Contingent Macro Advisor wrote in a client report, “Overall, the recovery in manufacturing has been swift, but levels of activity remain below the levels before the shutdowns.
” Besides, followed by the release of ISM US Manufacturing activity data that picked up to a nearly 22-month high in August, American Dollar had sharply bounced back alongside the Wall St., while Nasdaq and S&P 500 had clocked another record-setting closure.