FX.co ★ US Manufacturing Growth Slows in August

The ISM Manufacturing PMI slipped to 54.6 in August 2026 from July’s near four-year high of 55.6, coming in below market expectations of 55.2. Despite the decline, the index still signaled an eighth straight month of expansion in manufacturing, though the pace of growth cooled as new orders dropped sharply to 53.7 from 56.7.

Production growth was largely unchanged at 58.3 versus 58.5 in July, while employment growth moderated to 51.2 from 52.8, indicating a slower rate of job creation in the sector. At the same time, manufacturers continued to report rising costs, ongoing supply-chain disruptions, and elevated uncertainty, with tariffs and the conflict in the Middle East adding to the pressure.

The Prices Index remained high at 71.1, and the Supplier Deliveries Index increased to 59.3, both pointing to persistent cost pressures and supply-chain delays. The Backlog of Orders Index fell sharply to 51.8, and the Imports Index declined to 52.5, suggesting softer order pipelines and weaker import activity.