U.S. Manufacturing Activity Eases in August as ISM PMI Hits 54.6%

U.S. manufacturing activity expanded for the eighth consecutive month in August, though the pace of growth slowed more than anticipated. The Institute for Supply Management (ISM) reported its Manufacturing PMI at 54.6%, down from 55.6% in July and missing the consensus forecast of 55.2%. Despite the moderation, the figure remains firmly in expansion territory as the sector navigates persistent supply headwinds.

The decline was led by the New Orders Index, which fell 3.0 points to 53.7%, and the Employment Index, which dipped to 51.2%. Cost pressures remained elevated, with the Prices Index holding steady at 71.1%. Manufacturers cited tariffs, commodity prices, and delivery delays as primary concerns. Separately, the final S&P Global U.S. Manufacturing PMI for August was confirmed at 53.9%, matching July’s reading and indicating steady but slowing production volumes.