Growth deceleration continues as August mfg PMI falls to three-month low

The August reading is slightly lower than the flash projection of 57.9 released last month. However, it has remained above both its long-term average and the 50-point mark for nearly three years.
For representational purposes
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Indicating a continuing loss of momentum in economic activity, manufacturing activity eased to a three-month low in August but still above the 50-point mark amid a moderate increase in new business and production.

According to the HSBC purchasing managers index (PMI), released on Monday, the manufacturing has remained above its long-term average and 50-point mark for nearly three years and printed at 57.5 in August, down from 58.1 in July.

The index, compiled by S&P Global, stood at 58.3 in June, 57.5 in May, and 58.8 in April.

The August reading is slightly lower than the flash projection of 57.9 released last month. However, it has remained above both its long-term average and the 50-point mark for nearly three years.

This mark separates contraction from expansion. The index is based on responses to questionnaires sent to around 400 manufacturers.

Manufacturers registered softer increase in new business and output during August, albeit with rates of expansion remaining elevated by historical standards, the report said.

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