Are there serious problems in manufacturing? Yesterday, the Institute for Supply Management reported that its manufacturing index fell from 51.2 percent in July to 49.1 percent in August. Any reading below 50 percent indicates a contraction in activity.
August's mark is the lowest reading for this index since January 2016. The ISM Manufacturing Index has now declined for five straight months.
The new orders index fell to 47.2 percent and the production index fell to 49.5 percent. Only nine of the 18 manufacturing industries reported growth in August and only three reported gains in new orders. The ISM also noted “a notable decrease in business confidence” in August.
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