- Prelim was 53.3
- Prior was 49.8
- Three year high
- Input cost inflation accelerated in August and was the second-sharpest in the past three years
The ISM manufacturing survey is due at the top of the hour alongside construction spending numbers.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence
“Purchasing managers reported that the US manufacturing was running hot over the summer.
“The past three months have seen the strongest expansion of production since the first half of 2022, with the upturn gathering pace in August amid rising sales. Hiring also picked up again in August as factories took on more staff to meet an influx of new orders and an accumulation of uncompleted work for waiting customers.
“The manufacturing sector is therefore on course to provide a boost to the US economy in the third quarter.
“The upturn is in part being fueled by inventory building, with factories reporting a further jump in warehouse holdings in August due to concerns over future price rises and potential supply constraints. These concerns are being stoked by uncertainty over the impact of tariffs, fears which were underpinned by a further jump in prices paid for inputs by factories, linked overwhelmingly by purchasing managers to these tariffs.
“Cost increases are being passed on to customers via widespread hikes to factory gate prices. The big question is the degree to which these price rises will then feed through to higher consumer price inflation in the coming months.”
