ISM Flat in August But Intriguing Developments in Subcomponents

Source: Economics Group of Wells Fargo Bank, N.A.Summary There is much to like about the August ISM manufacturing report for policymakers at the Federal Reserve. The prices paid measure fell sharply to a more than two-year low, while the orders and employment components both returned to expansion territory. Plenty to Like for Monetary Policymakers The ISM index was unchanged in August at 52.8, the slowest pace of expansion since June 2020. Still, the outcome was better than the 51.8 that had been expected by the consensus. Of particular interest to financial markets is the fact that the employment component rose 4.3 points to 54.2. That is the best number since March for this manufacturing job-market bellwether and increases the prospect of a fifth-straight upside surprise versus the consensus in tomorrow’s August jobs report. READ FULL ARTICLE>>