Manufacturing PMI slips to 52.8 in August, weakest expansion in five years
India's manufacturing sector expanded at its weakest pace in five years in August as output and new orders slowed, while employment fell for the first time in two-and-a-half years
In August, U.S. manufacturing activity showed continued support for freight demand, though growth slowed compared to July. The Institute for Supply Management's Manufacturing PMI stood at 54.6, a 1 percentage point drop from the previous month and below the economists' forecast of 55.2. A PMI above 50 indicates expansion, while below 50 signals contraction.
Despite the decline, the reading remained above the 47.5 level, suggesting overall economic growth. August's manufacturing PMI aligned with annualized real GDP growth of 2.4%. New orders, a key indicator of future activity, expanded for an eighth consecutive month, but at a slower pace (53.7) compared to July. Demand sentiment for new orders was less optimistic, with a 2-to-1 ratio of positive to negative comments, down from 3.5-to-1 in July.
Manufacturing employment turned positive in July and remained so in August for the first time in 33 months. However, transportation capacity remained tight, with the Logistics Managers' Index at 40, still in contraction territory but slowing by 11.6 points from July.
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