ISM PMI analysis for the US economy in August 2019.

The ISM PMI is in a contraction mode now at 49.1 and this is lower than China's PMI (49.5).  China's PMI is at the doldrum already and is ready to expand soon but the US PMI is still sliding after 5 consecutive months.

The US was unable to export to China because of the high tariffs and this caused the new export order to decline further.  However, the frontloading by the US consumers prior to the 1 Sept tariffs was helping to hold up the new local order.  I don't see the rise to be sustainable as consumer demand is elastic.

The reduction in new orders is causing declines in customers' inventories, production, employment and supplier's deliveries.

The high tariffs were affecting imports and the producers were turning to local raw materials which were cheaper.

This is a very bad PMI report as many sub-indexes are in the red.  The next GDP figure will be very bad despite the US recent revision to 2% from 2.1%.

http://sg-stock.blogspot.com/2019/08/ism-pmi-analysis-for-us-economy-in-july.html