US August ISM manufacturing index 47.2 vs 47.5 expected

• Prior was 46.8
• Prices paid 54.0 versus 52.9 prior
• Employment 46.0 versus 43.4 prior
• New orders 44.6 versus 47.4 prior (lowest since May 2023)
• Production 44.8 versus 45.9 prior
• Supplier deliveries 50.5 versus 52.6 prior
• Inventories 50.3 versus 44.5 prior
• Backlog of orders 43.6 versus 41.7 prior
• New export orders 48.6 versus 49.0 prior
• Imports 49.6 versus 48.6 prior

The new orders number is dreadful and underscores the forward-looking weakness in the manufacturing survey from S&P Global

Comments in the report:

• “A noticeable slowdown in business activity. Staffing and production
  rationalization has been triggered. Previous optimism about future
  growth has been dashed.” [Chemical Products]
• “Backlog has dropped in half as invoicing remains strong, but orders
  have slowed significantly. Hoping to see orders pick back up for the
  fourth quarter and into 2025 but expect third quarter to remain slow for
  incoming orders.” [Transportation Equipment]
• “After a slow start and lower year-over-year sales volume during the
  first half of the year, we are now seeing a mild increase in
  year-over-year sales volume, along with more steady growth.” [Food,
  Beverage & Tobacco Products]
• “Business outlook is good. Recovery from the electronics slowdown is
  strong for the second half of the year.” [Computer & Electronic
  Products]
• “New order intake is sluggish at best. Interestingly, even though
  orders are down, inquiries are up. Customers have indicated capital has
  been approved for equipment purchases, but they were directed to put
  projects on hold until the fourth quarter of 2024. This indicates the
  uncertainty around the election. We anticipate a strong end of the year,
  with a rise in backlog going into 2025.” [Machinery]
• “Our order levels are on a slow, steady decline; it looks like the
  trend will continue through the end of the year. We are downsizing
  through attrition and not hiring backfills, but there have been no
  layoffs to date. The bright spot is a few customer programs have helped
  increase orders for parts, resulting in some production areas to be very
  busy while others have little work. Redeploying people where we can.”
  [Fabricated Metal Products]
• “New orders continue to be strong, and inventories are slightly down
  as a result. Supplier lead times seem to be creeping back up in certain
  categories.” [Miscellaneous Manufacturing]
• “Business is cooling down, and we don’t expect a rebound until after
  the election is over. As we build our 2025 budget, we continue to have
  deep concerns about the added environmental costs on energy.” [Paper
  Products]
• “Order book remains strong for now. We are preparing for a slowdown
  in U.S. auto sales. We are running overtime to keep pace, as hiring
  hourly employees has been difficult. Some walk off the job within hours
  because they cannot handle factory work.” [Primary Metals]
• “High interest rates are curtailing consumer spending on large
  discretionary spending for furniture, cabinetry, flooring and decorative
  trim, which has affected our industry sales potential. At the same
  time, pent-up demand seems to be growing for housing and remodeling.
  Interest rate cuts may not happen soon enough to have an impact this
  year.” [Wood Products]

This article was written by Adam Button at www.forexlive.com.