Meet&CoTEMPE, Ariz. — The U.S. manufacturing sector saw its sixth consecutive month of contraction in August, according to the latest Manufacturing PMI report from the Institute for Supply Management (ISM). The Manufacturing PMI registered at 48.7%, a modest increase of 0.7 percentage points from July’s 48%, but still below the key 50% mark, indicating ongoing industry struggles.
Susan Spence, chair of the ISM Manufacturing Business Survey Committee, noted that while the contraction rate slowed in August, the growth in new orders played a significant role in the modest PMI increase. However, since production levels fell almost in line with new order growth, the overall improvement in the PMI was minimal.
A PMI reading below 50% signals contraction, and August’s figures suggest that the broader manufacturing economy continues to face challenges. Of the industries tracked, seven reported growth in August, including textile mills, apparel, and food products, while ten industries, including furniture, experienced contraction.
The furniture sector, in particular, showed weak performance in August, with key indicators signaling continued pressure:
A decline in production and lower new order levels.
Slower delivery times, continuing to highlight supply chain disruptions.
Rising raw material costs, in line with broader trends across industries.
A drop in order backlogs, while inventories were reported as too high.
A decline in import volumes.
While the new orders index grew to 51.4% in August, indicating a return to modest growth, other figures in the sector were less optimistic. The production index fell to 47.8%, showing contraction, while the employment index edged up to 43.8%. Backlogs of orders continued to shrink, with the index dropping to 44.7%.
Prices remained high, though the prices index decreased slightly to 63.7% from July’s 64.8%. Imports also contracted, with the imports index dipping to 46%.
