US' ISM manufacturing PMI falls to lowest in 26 months

By Ovunc Kutlu

ANKARA (AA) - The ISM manufacturing purchasing managers' index (PMI) in the US declined to its lowest level in 26 months in August, according to a report Thursday by the Institute for Supply Management (ISM).

The index, based on replies from purchasing and supply executives in more than 400 industrial firms, fell to 52.8% -- its lowest since June 2020.

Analysts expected the figure to come in at 52.0%.

While a reading above 50 indicates growth, below that shows contraction.

The prices index was 52.5% in August, down 7.5 percentage points from 60% in July, also the lowest reading since June 2020

"Of the six biggest manufacturing industries, five — Petroleum & Coal Products; Transportation Equipment; Computer & Electronic Products; Machinery; and Food, Beverage & Tobacco Products — registered moderate-to-strong growth in August," ISM Manufacturing Business Survey Committee Chair Timothy Fiore said in the statement.

The production index fell to 50.4% in August, a decline of 3.1 percentage points from the July reading of 53.5%, said ISM.

The new orders index, on the other hand, rose to 51.3% last month, up 3.3 percentage points from the previous month's reading of 48%.

The employment index increased to 54.2% in August, which is 4.3 percentage points above the 49.9% recorded in July.