The contraction of the production sector in August, as reported on September 2 September, marked the sixth month in a row after a two -month expansion, which was preceded by 26 months of straight months Contraction.
The PMI of the production recorded 48.7% in August, which was recorded by an increase in the point by 0.7 percent compared to 48% in July.
The overall economy continued after one month of contraction in the 64th month April 2020.
“With a view to the production industry, 69% of the Sector GDP contractually compared to 79% in July” in August ” Susan SpenceChairman of the Committee for Corporate Customs of the Institute for Supply Management Manufacturing Business, in a statement. “Four percent of GDP are strongly related (registration of a composed PMI of 45% or lower), compared to 31% in July.
“The proportion of GDP of the sector with a PMI of or under 45% is a good metric to measure the comprehensive value of manufacturing transaction values. Of the six largest manufacturing industries, two (food, beverage & Tabacco Products and Petroleum & Coal Products) that were expanded in August compared to no one in July.”
The index report is as follows:
Supplier delivery index showed after a month in “faster” territory, which in seven consecutive months in the expansion area (“slower”) specified a slower delivery performance. The reading of 51.3% rose by 2 percentage points compared to the 49.3% in July.
Inventory index 49.4%registered by 0.5 percentage points compared to the reading of 48.9%in July.
New export order index Reading 47.6% is 1.5 percentage points higher than the reading of 46.1% registered in July.
Imports Index 46%registers 1.6 percentage points lower than the reading of 47.6%in July.
New orders index showed growth after a six -month contraction period in August; The number of 51.4% is 4.3 percentage points higher than the 47.1% recorded in July.
Production index was 47.8%, which corresponds to 3.6 percentage points lower than July 51.4%.
Prices index registered by 63.7%, which was reported to a decline of 1.1 percentage points compared to 64.8% in July.
Order inventory index registered 44.7%, by 2.1 percentage points compared to the 46.8%recorded in July.
Employment index 43.8%registered by 0.4 percentage points compared to the image of July of 43.4%.
What the respondents say
“A 50% tariff for imports of BrazilIn combination with the removal of the special sugar quota by the US Agriculture Ministry, certified organic sugar sugar -and everything that has been done with it -becomes significantly more expensive. “(((Food, drinks and tobacco products)
“Orders about most product lines have decreased. The financial expectations for the rest of 2025 have been reduced. Too much uncertainty for us and our customers in relation to tariffs and the USA/global economy.” ((Chemical products)))
“The tariffs are still unstable, with suppliers adding surcharges of 2.6% and 50%.” ((Petroleum and coal products)))
“Customs continues to lead the planning/planning activities. IndiaAnd increases from the original 10%in all countries. Our materials/supplies are now increasing in price, so that our sales prices are checked again to ensure that we maintain a sustainable margin. Plans to bring production back to the USA are affected by higher material costs, which makes it more difficult to justify the return. “Computer and electronic products)))
“The construction industry, especially the home building, is still at a lower level. With the new building at a low level, our new sales are influenced. We mainly rely on the replacement business. The costs of the sold goods are higher due to goods with a tariff.” ((Machines)))
“Domestic sales remain flat, but have decreased by four percent compared to the plan of the unit volume [tariff pricing]. Export demand decreases, since the customers do not accept any tariff effects, for which some production transfers from the US supplier deliveries are probably constant, with the cost of shipping shipping significantly decreasing. Customs costs have the greatest financial effects, but also the costs of copper and steel products. “Manufactured metal products)))
“The truck industry continues to process. Our gap continues to shrink because the customers continue to hold back for the purchase of new devices. This current environment is much Worse than the great recession from 2008-09. There are absolutely no activities in the transport equipment industry. This is 100% due to the current collective bargaining policy and the uncertainty they create. We are also in stagflation: the prices have increased due to material tariffs, but the volume is far away. “” (Transport equipment)))
“Very preliminary domestic market, whereby the building and the redesign are not very active at all. Inflation, among other things, affects the purchasing power of consumers, which leads to negative signs of our order files. The international markets are increased due to the unpredictability of on-AF alain tariff activities.” ((Wooden products)))
“We implemented our second increase in price.” Made in the USA'has become even more difficult in many components due to tariffs. The total price increase has so far: 24%; That will only compensate for tariffs. No influence on the margin percentage that actually drops. We have released about 15% of our US workforce in two rounds of discharge. These are highly paid and highly qualified roles: engineers, marketing, design teams, finance, IT and operation. The administration wants to work in the USA, but we lose higher and higher -paid roles. Without stability in trade and business, investment expenses, expenses and settings are frozen. It is survival. “” (Electrical devices, devices and components)))
“There is still uncertainty at the hardware store. Large expansion or investments are hindered by the unknowns of the costs and the economy. The markets in which we work can be strong at short notice, but there is an underlying feeling that can question how long it takes.” ((Non -metallic mineral products)))