A key barometer of U.S. factories was negative for the fifth straight month in August, signaling the manufacturing side of the economy is still in a deep slump that might not end until after the presidential election. The Institute for Supply Management’s manufacturing index edged up to 47.2 from an eight-month low of 46.8. Numbers below 50 signal the manufacturing sector is shrinking. A separate gauge of U.S. manufacturing, the S&P Purchasing Managers’ Index, fell from 49.6 to 47.9 in August. “The manufacturing sector acting as an increased drag on the economy midway through the third quarter. Forward looking indicators suggest this drag could intensify in the coming months,” commented Chris Williamson, chief business economist at S&P Global Market Intelligence.
U.S. manufacturing gauges raise fears of economic contraction ahead
12 responses to “U.S. manufacturing gauges raise fears of economic contraction ahead”
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