US: ISM manufacturing expected to decline to 49.0 in September - Nomura

Research Team at Nomura, expect the US ISM manufacturing index to decline to 49.0 in September.

Key Quotes

 “The August report showed a clear slowdown in manufacturing activity. The headline index declined over 3 points in August, to 49.4 from 52.6, falling below 50 for the first time since February 2016. The production and new orders indexes dropped sharply below 50, to 49.6 and 49.1 from 55.4 and 56.9, respectively, implying production and new orders activity contracted on balance in August. Plus, other data from the industrial sector, such as industrial production and durable goods orders, sent similar negative signals in August.

The early read on the manufacturing sector for September has been also weak. The ISM-adjusted Philly Fed and Empire State manufacturing indices trended lower and commodity prices for raw industrial goods declined for a second month.”