Economy
September 3, 2019
ISM PMI Slides Into Contraction
Written by Sandy Williams
The ISM Manufacturing Index fell to 49.1 percent in August from 51.2 percent in July indicating a contraction in business activity and the lowest level since the 48.0 percent reading in January 2016.
“Comments from the panel reflect a notable decrease in business confidence,” said Timothy R. Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “August saw the end of the PMI expansion that spanned 35 months, with steady expansion softening over the last four months. Demand contracted, with the New Orders Index contracting, the Customers’ Inventories Index recovering slightly from prior months and the Backlog of Orders Index contracting for the fourth straight month. The New Export Orders Index contracted strongly and experienced the biggest loss among the subindexes.”
