August 2015 ISM Manufacturing Survey Again Marginally Declined But Remains In Expansion

The ISM Manufacturing survey continues to indicate manufacturing growth expansion – but again marginally declined this month. The key internal new orders declined but remains in expansion. Backlog of orders contraction improved over the contraction the previous month..

The ISM Manufacturing survey index (PMI) marginally declined from 52.7 to 51.1 (50 separates manufacturing contraction and expansion). This was slightly below expectations which were 51.5 to 54.0 (consensus 52.8).

Earlier today, the PMI Manufacturing Index was released – from Bloomberg:

Released On 9/1/2015 9:45:00 AM For Aug, 2015

	Prior	Consensus	Consensus Range	Actual
Level	53.8	53.0	52.7 to 54.0	53.0

Highlights
Growth in Markit’s manufacturing sample is as slow as it’s been since October 2013, at a composite 53.0 in August which is right at the Econoday consensus. Growth in new orders slowed while growth in backlog orders was marginal. Export orders, hurt by the strong dollar, contracted for the fourth time in five months with August’s drop the deepest of the run. Growth in output is the slowest since January 2014 while growth in employment is the slowest since July 2014.

Inventory data are positive, showing the first decline this year for finished goods and the slowest build for pre-production in just over a year, a combination which may ease concern that inventories in the sector are heavy. Price readings are quiet.

This is the 32nd month of expansion. The regional Fed manufacturing surveys indicated little growth or contraction in August, and now the ISM indicates manufacturing shows weak expansion.