US manufacturing surges in August despite trade concerns: ISM
WASHINGTON: US manufacturing surged in August, showing surprising strength in a normally tepid month and despite continued fears about the impact of trade tariffs, according to an industry survey.
New orders, production and employment all grew solidly compared to July, with contributions from 16 of the 18 industries surveyed, and especially large gains from the six big industries, according to the Institute for Supply Management’s closely-watched survey.
But half the executives continue to express concerns about the US exchange of tariffs and counter-tariffs affecting prices of inputs and sales, and many are starting to think about alternate production plans, said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.
“There are big uncertainties over where they should be manufacturing next year, and where they should be buying their product,” Fiore told reporters in a conference call.
“The tariff issue is still not settled, and we don’t know where it’s going,” he said, adding that “companies doing a lot of studying to make sure they can protect exports.”
In a month where output normally would be expected to slow, ISM’s Purchasing Managers Index for US manufacturing jumped to a 14-year high of 61.3 per cent, an increase of 3.2 points from the prior month. — AFP