Manufacturing activity in the United States contracts for the first time since 2016

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(Reuters) – Growth in manufacturing activity in the United States contracted in August for the first time since 2016, against a backdrop of slowing global growth and rising trade tensions, according to the monthly survey of the US. Institute for Supply Management (ISM) released Tuesday.

The ISM manufacturing index was down to 49.1 last month, the lowest level since January 2016, against 51.2 in July. Economists polled by Reuters expected a slight rebound, with an index of 51.1.

The index for the first time since August 2016 is below the threshold of 50, marking a contraction in the manufacturing sector, which represents about 12% of the US economy.

The new orders sub-index was 47.2 in August, the lowest since June 2012, compared with 50.8 in July.

The paid price subindex edged up to 46.0 from 45.1 in July and 45.8 expected by the consensus.

The employment component fell to 47.4 in August, the lowest level since March 2016 and 51.7 in July.

The Dow Jones widened its losses after the publication of this statistic.

The yield on 10-year US Treasuries fell further to 1.4456% (-6 basis points). The dollar index against a basket of other major currencies remains on the rise.

(Richard Leong, Juliette Rouillon for French service, edited by Patrick Vignal)



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