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August PMI data revealed a significant improvement in the health of the U.S. manufacturing sector.
Source: IHS Markit.
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Even though output expectations strengthened, employment growth eased as firms struggled to retain staff and identify suitable candidates for current job vacancies.
The seasonally adjusted IHS Markit US Manufacturing PMI posted 61.1 in August, down from 63.4 in July. The latest improvement in operating conditions was the softest in four months.
New orders continued to rise midway through the third quarter, as client demand increased significantly. Some companies stated that stockpiling efforts at clients drove new sales.
US manufacturers recorded that material shortages hurt output growth, as supplier delivery times increased noticeably. Longer lead times were attributed to the greater global input demand and suppliers’ capacity issues.
Cost burdens also rose markedly in August. In a push to partially pass on greater costs to their customers, goods producers raised their selling prices at the greater rate on record.
US business confidence relating to the outlook for output over the coming year strengthened in August. Greater optimism was linked to hopes of further growth in client demand.
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