The Institute for Supply Management (ISM) said Tuesday that its Purchasing Managers' Index (PMI) registered 49.6 percent in August, a decrease of 0.2 percentage points from July's reading of 49.8 percent, indicating contraction in the manufacturing sector for the third consecutive month. This is also the lowest reading for the PMI since July 2009.
The New Orders Index registered 47.1 percent, a decrease of 0.9 percentage point from July, indicating contraction in new orders for the third consecutive month. The Production Index registered 47.2 percent, a decrease of 4.1 percentage points and indicating contraction in production for the first time since May 2009. The Employment Index remained in growth territory at 51.6 percent, but registered its lowest reading since November 2009 when the Employment Index registered 51 percent. The Prices Index increased 14.5 percentage points from its July reading to 54 percent. Exports increased 0.5 percentage points to 47 while the imports index fell 1.5 percentage points into negative territory at 49 percent.