ISM Manufacturing PMI Rises To 47.2, Falling Short of Analyst Predictions

ISM Manufacturing PMI Report Overview

On September 3, 2024, the Institute for Supply Management released the ISM Manufacturing PMI report for August. The report indicated that the ISM Manufacturing PMI increased from 46.8 in July to 47.2 in August, which was below the analyst consensus of 47.5.

Key Metrics

• New Orders Index: Decreased from 47.4 in July to 44.6 in August
• Production Index: Decreased from 45.9 to 44.8

The Institute for Supply Management commented: “Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and election uncertainty.”

Market Reactions

Today, traders had a chance to review the final reading of the S&P Global Manufacturing PMI report. This report showed a decline from 49.6 in July to 47.9 in August, compared to the analyst forecast of 48.

• U.S. Dollar Index was flat as traders reacted to the PMI data, trying to settle below the 101.60 level.
• Treasury yields are moving lower, which is bearish for the American currency.
• Gold settled near the $2485 level amid a broad pullback in commodity markets.

It remains to be seen whether PMI data will have a material impact on gold market dynamics. The SP500 pulled back towards the 5580 level as traders focused on the weaker-than-expected economic reports. Traders are worried that the U.S. economy is slowing down.

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.