US Factory Activity Slips in August as Price Pressures Mount
The ISM manufacturing index fell in August, with producers voicing frustration as input costs continue to climb.
American manufacturers ended the summer on a sour note, as the Institute for Supply Management's closely watched factory index slipped in August even as price pressures continued to intensify, leaving producers caught between slowing demand and rising costs.
The data reflects a growing sense of irritation across the industrial sector. One respondent captured the mood bluntly, telling ISM surveyors that "the economy is annoying" — a candid summary of conditions where input prices keep climbing but sales momentum is failing to keep pace.
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Rising price pressure is a persistent thorn for factory operators who have already navigated supply-chain disruptions and labor shortages in recent years. When input costs escalate without a corresponding ability to pass those costs downstream, profit margins compress and investment decisions get delayed, compounding the broader slowdown in manufacturing activity.
The August reading adds to a pattern of uneven industrial performance in the United States, where the goods-producing sector has struggled to regain consistent footing even as the broader economy has remained relatively resilient. Analysts will be watching whether September data shows any relief on the cost side or a continued deterioration in new orders.
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