- Prelim was 53.3
- Prior was 49.8
- Three year high
- Input cost inflation accelerated
in August and was the second-sharpest in the past three
years
The ISM manufacturing survey is due at the top of the hour alongside construction spending numbers.
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence
“Purchasing managers reported that the US
manufacturing was running hot over the summer.
“The past three months have seen the strongest
expansion of production since the first half of 2022,
with the upturn gathering pace in August amid rising
sales. Hiring also picked up again in August as factories
took on more staff to meet an influx of new orders
and an accumulation of uncompleted work for waiting
customers.
“The manufacturing sector is therefore on course to
provide a boost to the US economy in the third quarter.
“The upturn is in part being fueled by inventory building,
with factories reporting a further jump in warehouse
holdings in August due to concerns over future price
rises and potential supply constraints. These concerns
are being stoked by uncertainty over the impact of
tariffs, fears which were underpinned by a further
jump in prices paid for inputs by factories, linked
overwhelmingly by purchasing managers to these tariffs.
“Cost increases are being passed on to customers via
widespread hikes to factory gate prices. The big question
is the degree to which these price rises will then feed
through to higher consumer price inflation in the coming
months.”
This article was written by Adam Button at investinglive.com.