US Factory Growth Slows to 5-Month Low: S&P Global

2026-08-21 13:58 By Luisa Carvalho 1 min. read

The S&P Global US Manufacturing PMI eased to 53.2 in August 2026 from 53.9 prevously, undershooting market expectations of 53.9, flash estimates showed.

The latest reading pointed to a moderation in manufacturing activity, with growth at its weakest since March, held back by higher fuel costs, reduced inventory building and raw material shortages linked to supply delays.

Output growth slowed for a third consecutive month, reaching its weakest pace since July last year.

New orders held up better but also lost momentum, expanding at their slowest rate since March.

Input purchases fell for the first time since February, weighing on the PMI, while supply times lengthened sharply again, Employment rose modestly at the fastest pace since May.

Price pressures moderated, especially in terms of selling price inflation, although nput cost inflation remained elevated by historical standards.due to high energy prices, squeezed supply lines, and tariffs.

Lastly, business sentiment improved.



News Stream
US Factory Growth Slows to 5-Month Low: S&P Global
The S&P Global US Manufacturing PMI eased to 53.2 in August 2026 from 53.9 prevously, undershooting market expectations of 53.9, flash estimates showed. The latest reading pointed to a moderation in manufacturing activity, with growth at its weakest since March, held back by higher fuel costs, reduced inventory building and raw material shortages linked to supply delays. Output growth slowed for a third consecutive month, reaching its weakest pace since July last year. New orders held up better but also lost momentum, expanding at their slowest rate since March. Input purchases fell for the first time since February, weighing on the PMI, while supply times lengthened sharply again, Employment rose modestly at the fastest pace since May. Price pressures moderated, especially in terms of selling price inflation, although nput cost inflation remained elevated by historical standards.due to high energy prices, squeezed supply lines, and tariffs. Lastly, business sentiment improved.
2026-08-21
US Manufacturing Sector Expansion Holds Steady
The S&P Global US Manufacturing PMI was revised slightly higher to 53.9 in July 2026 from the preliminary estimate of 53.8, matching June's reading and signaling another month of solid expansion in factory activity. Operating conditions have now improved for 12 consecutive months, although momentum softened. Output growth eased to its weakest pace since March, while new orders increased at a slower rate for the third straight month. Export orders continued to decline amid tariff pressures and subdued overseas demand. Supply chain disruptions remained severe, with supplier delivery times deteriorating at one of the fastest rates in four years, contributing to material shortages. Input cost inflation, driven by higher energy prices and tariffs, eased to a four-month low but remained elevated, prompting manufacturers to continue raising selling prices. Business confidence stayed positive but slipped to its weakest level since October 2025.
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The S&P Global US Manufacturing PMI edged down to 53.8 in July 2026 from 53.9 in June, falling short of market expectations of 54.3, according to the preliminary estimate. Despite the slight decline, the index remained close to its highest levels in more than four years. The modest slowdown reflected a sharp easing in production growth, which weakened to its slowest pace since March, while new orders expanded at the weakest rate in four months. Slower inventory accumulation, following exceptionally strong stockbuilding in May and June, also weighed on the headline PMI. These headwinds were partly offset by a renewed increase in factory employment and longer supplier delivery times. Unlike the delays typically associated with strong demand, the latest deterioration in supplier performance was primarily linked to supply disruptions stemming from the Middle East.
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