Keeping you up to date on the latest data releases.
- ISM Manufacturing
The ISM manufacturing index for August, specifically the Purchasing Manufacturers Index (PMI), decreased by 0.2 to 49.6, slightly below its July level of 49.8. The PMI is still down from its one year high of 54.8 from April 2012. This is the lowest the PMI has been since July 2009 when it reached 49.2. According to the ISM, the past relationship between the PMI and the economy indicates that if the current level of the August PMI (49.6) was annualized, this would correspond to a 2.4 percent increase in real GDP for 2012. Production decreased from 51.3 to 47.2, indicating contraction in production for the first time since May 2009. New orders decreased from 48.0 to 47.1 and they were accompanied by an increase in inventories to 53.0 from 49.0. Employment decreased 0.4 to 51.6. Generally, an employment index above 50.5 percent corresponds to positive job growth in the manufacturing sector as measured by the Bureau of Labor Statistics. Prices increased by 145 basis points to 54.0 (from 39.5), the largest such increase since September 2005.