US: ISM Manufacturing PMI improves modestly to 59.9 in August vs. 58.6 expected

• ISM Manufacturing PMI edged slightly higher in August. 
• US Dollar Index struggles to gains traction after PMI data.

In August, the economic activity in the US manufacturing sector expanded at a stronger pace than it did in July with the ISM’s Manufacturing PMI rising modestly to 59.9 from 59.5. This reading came in higher than the market expectation of 58.6.

Further details of the publication revealed that the Employment Index declined to 49 from 52.9 and the Prices Paid Index retreated to 79.4 from 85.7. Finally, the New Orders Index rose to 66.7 from 64.9.

Commenting on the data, “business Survey Committee panelists reported that their companies and suppliers continue to struggle at unprecedented levels to meet increasing demand,” noted Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee.

“All segments of the manufacturing economy are impacted by record-long raw-materials lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products,” Fiore added. 

Market reaction

This report doesn’t seem to be having a noticeable impact on the USD’s performance against its rivals. As of writing, the US Dollar Index was down 0.15% on the day at 92.50.