US ISM Manufacturing PMI rises to 47.2 in August vs. 47.5 expected

• US ISM manufacturing PMI rose slightly in August.
• The US dollar index remains in the daily range above 101.50.

Business activity in the US manufacturing sector continued to contract, albeit at a weaker pace in August, with the ISM Manufacturing PMI rising to 47.2 from 46.8 in July. This reading was slightly below market expectations of 47.5.

The PMI’s Employment Index rebounded to 46 from 43.4 in July, while the New Orders Index fell to 44.6 from 47.4 over the same period. Finally, the Price Paid Index, the inflation component, rose to 54 from 52.9.

Commenting on the survey findings, “while still in contraction territory, U.S. manufacturing activity contracted more slowly than last month,” said Timothy R. Fiore, chairman of the Manufacturing Business Survey Committee of the Institute for Supply Management (ISM). “Demand continues to be weak, output has declined and inflows have remained accommodative.”

Market reaction

These figures do not appear to have a significant impact on the valuation of the US dollar. At press time, the US dollar index was virtually unchanged on the day at 101.62.