According to the Institute for Supply Management’s Manufacturing Purchasing Managers’ Index, economic activity for the sector expanded at a slightly slower pace in August. The index came in at 54.6%, down 1.0 percentage point from 55.6% in the prior month. This was slightly below market expectations of 55.2%. A value above 50% reflects expansion in the manufacturing sector. New orders continued to expand with a reading of 53.7%, which was a decrease from last month by 3.0 pp. The price index registered 71.1% in August, unchanged from last month. The employment index decreased 1.6 pp to 51.2%.
The ABA Office of the Chief Economist believes the manufacturing sector’s eight consecutive months of expansion points to the sector’s continued resilience despite rising input costs. Overall manufacturing activity has remained firmly above year-ago levels. Strong manufacturing business activity will continue to support C&I loan demand.
