The Institute of Supply Management just reported that its Purchasing Managers’ Index for Manufacturing rose to 56 in August from 54.2 and that beat estimates of 54.8. Earlier, Markit Services reported that its private PMI report fell to 53.1 from 53.6 and that disappointed analysts expecting it to remain unchanged.
Within the ISM report, the New Orders sub-index roared to 67.6 from 61.5 far outpacing forecasts of a decline to 58.8. The Prices Paid sub-index also unexpectedly leaped to 59.5 from 53.2 versus an estimate of 54. Improvement, too,was seen in the Employment sub-index although its new value of 46.4 is still in the contraction zone. This measure was 44.3 in July.
Some disappoint came from a report on Construction Spending showing that that measure only grew by 0.1% in July against a forecast of a 1% boost. Markets seem little affected by the news and the Treasury’s Ten-Year is still yielding about 72 basis points.