August Manufacturing ISM Report on Business; PMI at 49.1%

US manufacturing sector contracts for first time in 3 years

Nor does the ISM report show that higher tariffs imposed by Trump on Chinese goods have yet translated into "upward price pressures or materials shortages", according to Bloomberg Chief U.S. Economist Carl Riccadonna.

Manufacturers today are anxious about a contraction in new export orders and to the cost of moving manufacturing out of China to circumvent the Trump tariffs, the ISM says. The 10-year yield fell as low as 1.4370% and was last down 6.2 basis points to 1.4439%.

The ISM's index of prices paid showed raw materials prices decreased for a third consecutive month, albeit at a slower pace in August, reflecting waning demand. Comments by the ISM's panel of purchasing executives "reflect a notable decrease in business confidence", the institute said.

The manufacturing sector has added 517,000 jobs in the past three years. Any reading below 50 indicates contraction. Employment fell 4.3% to 47.4 after 34 consecutive months of growth, contracting for the first time since September 2016, when it was at 48.9.

"Respondents continued to note supply chain adjustments as a result of moving manufacturing from China". "The survey is not yet consistent with a steep downturn in the broader economy - manufacturing already has been contracting for two quarters - but another couple of months of declines on this scale would leave the USA facing an entirely unnecessary and self-inflicted recession".

Fiore noted that, unlike prior manufacturing contractions, the index in this case had fallen for five straight months without interruption.

"This time, the story is China's slowdown and the trade war, with the latter now the bigger problem, judging by the substantial and widening gap between the ISM new orders index - down to 47.2 from 50.8 - and China's Caixin manufacturing PMI, which has risen by a couple of points from its January low". Business spending fell in the April-June quarter for the first time since 2016.

Trump cancels Poland trip as hurricane Dorian barrels down to Florida
Florida Power and Light was among several Florida utilities requesting assistance from other utility partners in the region. NOAA warns of risk of life-threatening storm surge and hurricane-force winds this weekend, which has continued to increase.

Across maturities, yields fell. But the pace of growth has slowed substantially, from an average of 22,000 jobs per month last year to fewer than 8,000 jobs per month in the first seven months of this year.

On Sunday, the US started charging a 15% tariff on about $112 billion of Chinese products. They also point to a trade war that shows little sign of stopping.

"Tariffs are still weighing heavily on supply managers' minds as they adjust their supply or manufacturing sources", Fiore said. Most sectors registered declines, with industrials leading the pack.

Manufacturing has been hard hit from the trade war.

Contractions in United States manufacturing have not always preceded recessions in the wider economy but the latest ISM figures will no doubt raise fears of a downturn. Factory activity is contracting in the U.K., Germany, Japan and South Korea, according to IHS Markit's manufacturers' purchasing managers' indexes.

The Dow and broader USA stock market declined sharply on Tuesday, giving back some of last week's gains after China and the United Sates proceeded with fresh tariffs on each other's goods.

Related News:

  • No change in Pakistan's nuclear policy: FO says on Imran Khan's statement

    No change in Pakistan's nuclear policy: FO says on Imran Khan's statement

    He was subsequently sentenced to death by a Pakistani military court after he confessed to his involvement in terrorist plots. He added that External Affairs Minister S Jaishankar spoke to Jadhav's mother and briefed her of the meeting's development.
    Walmart will stop selling some ammunition and exit the handgun market

    Walmart will stop selling some ammunition and exit the handgun market

    McMillon also renewed the company's call for "debate" on an assault weapons ban, but also urged action on other measures. The announcement comes just days after a mass shooting killed seven people in Odessa, Texas .
    Samsung Galaxy A90 5G Price in India, Specifications, Comparison (3rd September 2019)

    Samsung Galaxy A90 5G Price in India, Specifications, Comparison (3rd September 2019)

    As seen on the Samsung Galaxy M30s teaser on Amazon India, the smartphone will be launched at 12pm (noon) IST on September 18. The Galaxy Fold's premium $1980 price tag is unsurprisingly paired with a long list of premium internal hardware.
  • Hong Kong rioters vow no surrender

    Hong Kong rioters vow no surrender

    The scenes seem certain to inflame tensions in a city driven by almost three months of pro-democracy demonstrations. He said Amnesty's position was police use of force must be proportionate, necessary and legal.
    Simone Biles 'aches' for victims after brother charged

    Simone Biles 'aches' for victims after brother charged

    Biles went on to say that she hopes that the general public will respect the privacy of her family during the very hard time. He is scheduled to be arraigned on Friday, September 13, at the Cuyahoga County Justice Center in Cleveland, Ohio.
    33 still missing in California boat fire, 5 crew members rescued

    33 still missing in California boat fire, 5 crew members rescued

    It wasn't immediately clear when the bodies on the ocean floor might be retrieved or when divers could search the boat for others. Kroll that says these numbers are based on initial reports and authorities are awaiting final counts from the autopsies.
  • Corbyn to support snap election only if no-deal Brexit is blocked

    Corbyn to support snap election only if no-deal Brexit is blocked

    Boris Johnson has announced that he will seek to trigger a snap general election after losing a crunch vote on Brexit . This includes Hammond, Ken Clarke, Greg Clark, David Gauke, Justine Greening, and Nicholas Soames, among others.
    Alexis Sanchez has no regrets over Manchester United exit

    Alexis Sanchez has no regrets over Manchester United exit

    So disastrous has his signing been for United that it even provoked a big change in the club's recruitment strategy this summer. The former Barcelona player netted as many as 80 goals in 166 matches for Arsenal in a time span of almost four years.
    Iranian oil tanker sought by United States  turns off tracker outside Syria, Lebanon

    Iranian oil tanker sought by United States turns off tracker outside Syria, Lebanon

    Silvia 1, an Iran-flagged tanker, turned off its transponder on August 29 having entered the Mediterranean via the Suez Canal. The ship was some 45 nautical miles (83 kilometers) off the coast of Lebanon and Syria , heading north at its last report.
  • Gatland expecting wide open World Cup

    Gatland expecting wide open World Cup

    Wales's opening World Cup game is against Georgia in Toyota City on 23 September , followed by Australia in Tokyo six days later. You get to the quarter-finals and then take it one game at a time. "I believe we will go a long way at this World Cup".
    Angry customers with gun demand Popeye’s chicken sandwiches

    Angry customers with gun demand Popeye’s chicken sandwiches

    People are going insane for Popeyes' sold-out chicken sandwiches , but this is taking it three steps too far. It was the latest incident stemming from the wildly popular item that has rocked the fast food industry.
    These are the iPhone 11 pre-order and availability dates

    These are the iPhone 11 pre-order and availability dates

    The iPhone Pro Max, on the other hand, gets a 3,500 mAh battery and a starting price of $1,099. The Chinese site has ventured to guestimate the prices of the iPhone 2019 models also.

Most liked

Kim Kardashian West wants to move to Wyoming
Of all his kids, Kanye West , 42, is most like his firstborn, daughter North, according to the rapper's wife Kim Kardashian , 38. On another occasion, she was slammed for letting the 6-year-old wear her high heels for a photo.

Rams to sign QB Goff to 4-year extension
The Rams made a dramatic move up the draft board to select Goff in 2016, trading from the 15th pick to the top overall selection. The extension is worth $134 million and includes an NFL-record $110 million guaranteed, a source told ESPN's Adam Schefter .

UK: PM suffers defeat in crucial Commons vote
Britain's Labour leader Jeremy Corbyn makes a speech during a shadow cabinet meeting in Manchester, England, Monday Sept. 2, 2019. The British currency has been sensitive to developments of the Brexit process since the Brexit referendum in 2016.

Vegan Australian takes neighbours to Supreme Court over barbecue smells
A tribunal, and the state's highest court, has however, rejected her claims as unreasonable and lacking in evidence. Cilla Carden , of Perth , has been in a court battle with neighbor Toan Vu and his family since a year ago .

Jacksonville's coast out of Hurricane Dorian's cone of concern
According to the Nassau Guardian, he called it "probably the most sad and worst day of my life to address the Bahamian people". Many have been reported missing and there has been videos circulating showing enormous damage to buildings, cars and property.

US President Donald Trump warns China about delaying trade talks
A fresh wave of tariffs was imposed on a portion of US$300 billion worth of Chinese goods to the USA on Sunday. He urged Trump to postpone the new tariffs that went into effect to give both sides time to reach an agreement.

The US Stocks Rally On Friday As Well, Following Thursday's Trail
Apple, which relies on China as a key part of its supply chain, fell 1.7%, while chipmaker Nvidia fell 2.2%. Two surveys of Chinese factory activity showed demand is weak amid the mounting tariff war with Washington.

Prince Harry Flies to Amsterdam: Cautions Frequent Flyers Against Ruining the Environment
He also travelled via a commercial flight, amid recent criticism of his use of private jets. Prince Harry is a passionate environmental activist.

Super Smash Bros. Ultimate reportedly getting DLC from SNK
Nintendo UK may have revealed in advance the provenance of the future Super Smash Bros . The Hero was released in July while Banjo-Kazooie has a "Fall 2019" release window.

Boris Johnson loses working majority as Tory MP crosses floor
Johnson, for his part, has sought to quell the mutiny within the Conservative Party with threats of deselection and expulsion. The Conservative Party that attracted me to join it as a young man was a broad political church.

Jonas Brothers surprise teen who missed concert due to cancer treatment
Priyanka took to Instagram on Sunday to praise her husband of nine months for his new tequila line, Villa One . After her visit from the Jonas Brothers , she took to her page to thank her supporters for making it happen.

Apple Tile-rival tracker features detailed in leaked iOS 13 build
Apple, as per MacRumors , said the feature doesn't have any marked impact on the device's battery life and data usage. The tag will be able to notify users when it goes out-of-range from their iPhone or Apple Watch .

OnePlus 7 Pro Android 10 developer preview 5 lands
It is not definite as to when that would be but there are chances that it would be before the final stable release of Android 10. It will be interesting to see if OnePlus can deliver Android 10 stable as soon as its customer service operator suggested.

Hurricane Dorian flight cancellations reach the thousands today
It is expected to move northwards today producing storm surge, rain, and gusty winds for the east coast of Florida. It will eventually be a problem for Georgia, South Carolina, and North Carolina tomorrow through Friday morning.

Trump Administration Starts a New Round of Tariffs, Increases Trade War Tension
Major developments surrounding the trade conflict are likely to continue to drive crude oil prices in the next couple of days. By some measures, USA manufacturing is already in a recession.