August US manufacturing data
- Prelim was 61.2
- Final July reading was 63.4
- Output index 56.7 vs 59.7 July reading
- Prices paid 87.5 vs 86.7 July reading
The ISM manufacturing survey is due at the top of the hour.
From Markit's US economist:
"US goods producers continued to register marked upturns in output and new orders in August, as demand flourished once again. That said, constraints on production due to material shortages exerted further pressure on capacity as backlogs of work rose at a near-record rate.
"Not only were firms facing difficulties trying to clear outstanding work, they also faced further hikes in supplier costs. The pace of cost inflation exceeded the previous series record amid a pervasive scarcity of inputs. Favourable demand conditions allowed finished goods prices to also rise at an unprecedented rate, as firms sought to protect their margins.
"Delivery times lengthened at the second-sharpest rate in over 14 years of data collection, with purchasing activity still rising markedly. It was not only producers who highlighted stockpiling, however, as reports of customers shoring up their holdings of finished items resulted in a substantial drop in post-production inventories. Challenges rebuilding such stocks, including material and labour shortages, and everburgeoning levels of incomplete work are likely to remain a feature for some time to come."
