The ISM manufacturing index unexpectedly jumped to the highest since May 2004 as orders, production and employment all picked up, offering a positive sign for the economy even as trade tensions weigh on the outlook.
ISM Manufacturing Highlights
Institute for Supply Management's factory index jumped 3.2 points to 61.3, topping the consensus for 57.6 and exceeding all estimates. ISM manufacturing readings above 50 indicate expansion. The new orders measure leapt 4.9 points to 65.1; the production index increased to 63.3 from 58.5. The export orders gauge fell to a 10-month low of 55.2 from 55.3 while the imports index dipped 0.8 point to 53.9, lowest since last September.
Key Takeaways
The report shows factories remained solid in the third quarter and adds to signals that the nearly decade-old expansion will hold up well in the second half of 2018. The rise in the employment gauge also suggests manufacturers may record another month of strong payroll gains in Labor Department figures due Friday.
The gauges of exports and imports also may indicate that months of intensifying tensions are taking a toll on trade. Negotiations with Canada to modernize the North American Free Trade Agreement ended without a deal by Friday's deadline, though talks are scheduled to resume Wednesday.
President Donald Trump wants to move ahead with tariffs on $200 billion of Chinese imports as soon as a public-comment period concludes Sept. 6, Bloomberg News reported last week, citing six people familiar with the matter.
Other ISM Manufacturing Details
The employment gauge climbed to six-month high of 58.5 from 56.5.
The supplier deliveries index rebounded to 64.5, near the highest since 2004, from 62.1; figure shows longer lead times as producers have more difficulty meeting deman
Order backlogs rose to 57.5 from 54.7.
The gauge of prices paid for materials fell to 72.1, lowest since December, from 73.2.
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The post ISM Manufacturing Index Soars To 14-Year High On Booming Orders, Hiring appeared first on Investor's Business Daily.
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