Today's release of the ISM Manufacturing report for August showed a nice pick up for the manufacturing sector in the month of August. While economists were expecting a level of 57.0, the actual reading came in at 59.0. This was up from 57.1 in July and was the highest level since March 2011. For some perspective on August's reading, there have only been 20 months in the last 30 years where the headline reading has been above its current level.
The table below breaks down this month's ISM Manufacturing report by each of its sub-indices. Here, we saw broad-based strength as seven out of ten components saw month over month increases. This month's reading of 64.5 for the Production component was the best since May 2010, while the New Orders component rose to 66.7; that was the best reading for that component since April 2004! On the downside, the only three components that saw m/m declines were Supplier Deliveries, Employment (just a slight decline), and Prices Paid. Finally, on a y/y basis this month's report also saw broad based strength with eight out of ten components showing accelerating rates of growth.