Manufacturing Snapshot
Manufacturing continues to expand
The Performance of Manufacturing Index (PMI) softened in August but remains in expansionary territory at 53.1 on a seasonally adjusted basis.
A softer number but a broadening expansion
Digging into the details, expansion in the manufacturing industry appears to be broadening despite the lower headline number.
Some cautionary notes remain
Stocks of finished products was the highest subindex in August at 56.4. While this could be due to recent strength in orders and production, it could become problematic if demand falters.
Growth supportive
August’s PMI data paints a positive picture for economic momentum in Q3. While we are still waiting for Q2 GDP results, this result provides support for our forecast that annual GDP growth will be around 2% into the second half of 2026.
