Economy: ISM Manufacturing Index for August 2019

Earlier today, the Institute for Supply Management® (ISM®) released their Manufacturing Purchasing Manager's Index (PMI®) for August 2019:

Predicted: 51.3%
Actual: 49.1% (-2.1 points month-on-month change)

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Previous month: 51.2%

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Every month, the ISM surveys purchasing and supply executives at hundreds of companies across the country who are involved in manufacturing in some form. The resulting index is watched closely by academics, economists and investors because manufacturing accounts for about 12% of U.S. Gross Domestic Product (GDP).

The PMI is a reliable barometer of U.S. manufacturing: A PMI above 50% implies that U.S. manufacturing expanded during the month specified, while a reading below 50% implies that the made-in-the-USA sector contracted.

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From Today's Report:

"...Economic activity in the manufacturing sector contracted in August, and the overall economy grew for the 124th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®..."

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The following is a sampling of quotes from a diverse pool of U.S. manufacturers:

'Seeing some relief in the availability of electronic components in the marketplace, but there are still pockets of short supply, allocation, long lead times and the like. Tariffs continue to be a strain on the supply chain and the economy overall. '
(Computer + Electronic Products)

'While business is strong, there is an undercurrent of fear and alarm regarding the trade wars and a potential recession. '
(Chemical Products)

'Slowest month (July) this year so far in sales. '
(Transportation Equipment)

'Late planting of the corn and soybean crops has increased uncertainty over the final acres and yields. This is leading to volatile markets. '
(Food, Beverage + Tobacco Products)

'Slightly lower rate of incoming orders may be seasonal or a sign of a general slowdown. Monitoring closely. '
(Fabricated Metal Products)

'Incoming sales seem to be slowing down, and this is usually our busiest season. Concerns about the economy and tariffs. '
(Furniture + Related Products)

'Business is starting to show signs of a broad slowdown. '
(Machinery)

'Generally, business remains steady. However, we continue to plan for a hard Brexit and a long trade war between the U.S. and China. '
(Miscellaneous Manufacturing)

'The market for large building structures is slowing. '
(Nonmetallic Mineral Products)

'Current business is OK, nothing to brag about. Under projections and slightly below last year, [but] margins are hanging in there. '
(Plastics + Rubber Products)

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