- Prelim was 48.0
- July final was 46.8
- Production declines for first time in 7 months
- New orders fall at fastest pace since June 2023
- Employment drops for first time this year
- Input cost inflation accelerates to 16-month high
The ISM manufacturing report is due at the top of the hour.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:
“A further downward lurch in the PMI points to 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.
“Slower than expected sales are causing warehouses to fill with unsold stock, and a dearth of new orders has prompted factories to cut production for the first time since January. Producers are also reducing payroll numbers for the first time this year and buying fewer inputs amid concerns about excess capacity.
“The combination of falling orders and rising inventory sends the gloomiest forward-indication of production trends seen for one and a half years, and one of the most worrying signals witnessed since the global financial crisis.
“Although falling demand for raw materials has taken pressure off supply chains, rising wages and high shipping rates continue to be widely reported as factors pushing up input costs, which are now rising at the fastest pace since April of last year.”
