U.S. Manufacturing Activity Slows

Activity by America’s factories, including those in the transportation equipment sector, slowed in August for the first time in 35 months, says the Institute for Supply Management.

ISM’s purchasing managers’ index fell to 49.1 from 51.2 in July. Any PMI figure less than 50 indicates contraction.

Among the 11 indicators tracked by the institute, eight fell below 50 last month. The largest declines were for indexes related to employment (-4.3 to 47.4) and new orders (-3.6 to 47.2). ISM notes that its manufacturing index has been softening for the past four months.

The institute cites a “notable decrease” in business confidence last month, with worries about trade being the most significant issue.