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US manufacturing reports first contraction in there years

US manufacturing reports first contraction in there years

U.S. manufacturing sector reported its first contraction in three years in August, the Institute for Supply Management data released on Tuesday showed.

ISM Manufacturing PMI slipped to 49.1 in August from 51.2 in July, missing forecasts of 51.2, where a reading below 50 indicates contraction.

New export orders slowed for a second straight month in August to record its lowest reading since April 2009. 

“Many respondents continued to note global trade softness as a reason for sluggish activity,” said Timothy Fiore, Chair of ISM Manufacturing Business Survey Committee.

IHS Markit PMI manufacturing also showed a retreat to 50.3 in August, its lowest level since September 2009.

As of 09:07 GMT, the dollar index squandered its earlier gains, falling from a top of 99.31, the highest level since May 2017, to hover at 98.97.

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