US: Weakness in ISM manufacturing – TD Securities

Analysts at TD Securities note that the US ISM manufacturing survey was weak all around, dropping sharply below TD’s and consensus expectations at 49.1 for August (TD 51.0; market 51.2) — the index is now below 50 for the first time since August 2016.

Key Quotes

“The weakness was broad-based with all its key components declining to contractionary territory: new orders at 47.2, production at 49.5 and employment at 47.4. On net, the survey reiterates the outlook for manufacturing remains subdued (it is already on a technical recession) amid a slowdown in global growth and lingering trade uncertainties.”