August 2023 PMI revised upwards but still down for 10th consecutive month

From S&P Global

The US Manufacturing PMI was revised upwards to 47.9 in August 2023 from a initial reading of 47, compared to 49 in July.

The manufacturing sector has contracted every month since November 2022 except for a brief stabilization in April 2023, and the latest PMI reading was consistent with the average over this period.

A higher drop in new orders led to a renewed contraction in output, while firms continued to deplete their backlogged work and stocks of finished goods. Nevertheless, manufacturers continued to raise employment to support expected growth of production, although at the slowest pace since January.

On the price front, average input prices rose for the second month running, and at a slightly higher rate. Higher costs continued to be passed on to customers, as output prices rose at the fastest pace in four months. Looking ahead, output expectations are the weakest in 2023 so far.