August ISM US Manufacturing Index Declines From July, Indicates Slower Expansion

10:10 AM EDT, 09/01/2026 (MT Newswires) -- The Institute for Supply Management's US manufacturing index fell to 54.6 in August from 55.6 in July, compared with expectations for a smaller decrease to 55.2 reading in a survey compiled by Bloomberg as of 7:40 am ET. There were declines in the readings for new orders, production, employment and order backlogs, but the prices reading held steady. The index indicates expansion, which is in line with most of the regional manufacturing sector readings and S&P Global index, but in contrast with the Chicago PMI reading that suggested contraction. The monthly national manufacturing reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices. An increase in the index further above 50 is considered a sign of a strong US manufacturing sector, generally a positive for manufacturing industry stocks. However, if that strength comes with rising input prices due to shortages, that could be a negative for stocks as well as bonds.