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● TRACKER Updated 13d ago · 13 sources tracked

US factory activity slows in August; input prices remain elevated

The US manufacturing sector grew at a slower pace in August, with the ISM Manufacturing PMI falling to 54.6 from 55.6 in July. Despite the dip, the industry has expanded for eight consecutive months and remains near a four-year high. Growth slowed amid a decline in new orders and persistent supply chain constraints. Manufacturers continue to face elevated input prices, which some fear could undercut future sales. Market expectations for the August index were higher at 55.2.

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Key Developments & Real-Time Context
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  • The US ISM Manufacturing PMI for August 2026 was 54.6.
  • US manufacturing activity expanded for eight straight months.
  • The August PMI of 54.6 is a decrease from July's 55.6.
  • US factory activity growth slowed in August.
🛡️ Source Corroboration: 13 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

The August ISM Manufacturing PMI dropped to 54.6, missing market expectations of 55.2.

Live updates

  1. US Factory Activity Slows in August as Input Prices Remain High

    The US manufacturing sector grew at a slower pace in August, with the ISM Manufacturing PMI falling to 54.6 from 55.6 in July. Despite the dip, the industry has expanded for eight consecutive months and remains near a four-year high. Growth slowed amid a decline in new orders and persistent supply chain constraints. Manufacturers continue to face elevated input prices, which some fear could undercut future sales. Market expectations for the August index were higher at 55.2.

    Why it matters

    The ISM Manufacturing PMI is a key indicator of economic health, where readings above 50 signify expansion. Persistent inflation in input costs and geopolitical tensions can disrupt production cycles. Current volatility reflects broader uncertainty regarding summer economic momentum.

    What is confirmed

    • The US ISM Manufacturing PMI for August 2026 was 54.6.
    • US manufacturing activity expanded for eight straight months.
    • The August PMI of 54.6 is a decrease from July's 55.6.
    • US factory activity growth slowed in August.

    Still unconfirmed

    • Spot gold price reached $4,366/oz following the PMI report.

    What to watch next

    • September ISM Manufacturing PMI report
    • Updates on tariff policies affecting input prices
    • Data on new order volumes for the next quarter
    Sources used for this update (13)
    1. Reuters — US factory activity slows in August; input prices remain elevated
    2. MarketWatch — Manufacturers are getting frustrated: ‘The economy is annoying’
    3. Bloomberg.com — US Factory Gauge Eases But Holds Close to Four-Year High
    4. WSJ — U.S. Factory Activity Growth Slowed in August
    5. kitco.com — Spot gold price at $4,366/oz after ISM Manufacturing PMI falls to 54.6
    6. costar.com — News | US manufacturing expands for eighth straight month
    7. FXStreet — US ISM Manufacturing PMI fell to 54.6 in August
    8. PR Newswire — Manufacturing PMI® at 54.6%; August 2026 ISM® Manufacturing PMI® Report
    9. TradingView — US ISM MANUFACTURING INDEX 54.6 IN AUGUST VS. 55.6 IN JULY, 53.3 IN JUNE (VS. 55.2 MARKETS EXPECTED FOR AUGUST)
    10. FreightWaves — August’s manufacturing PMI dips to 54.6; supply chain constraints persist
    11. Staffing Industry Analysts — Manufacturing sector grows at slower pace in August
    12. Finimize — US Data Sent Mixed Signals About Summer’s Momentum
    confidence 95%
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