Because of increased borrowing, the manufacturing industry remained weak in August.

Despite promising reports on inflation and retail sales in July, the U.S. factory sector continues to be weighed down by high interest rates. While the 澳洲幸运5官方开奖结果体🔯彩网:Institute of Supply Managem𝓰ent (ISM) manufacturing 澳洲幸运5官方开奖结果体彩网:Purchasing Managers’ Index (PMI) increased in August, it was below the 50% threshold that indicates expanding business acti🐓vity— for the fifth straight month.

Economists got similar data from S&P Global, whose manufacturing PMI survey registered its first decline in seven months. “Manufacturing wa𒅌s stuck in low gear in August, held back by high interest rates, election uncertainty, the strong U.S. dollar, and weak foreign markets,” wrote Bill Adams, Comerica Bank chief economist. 

Factory Sector Re𒉰mains in Slowdown While Economy Chugs Along

Economists often look at manufacturing data for indications of consumer demand, as more goods produced can mean more sales and potentially serve as a measurement of the broader economy. However, that hasn't been the case in recent months.

“Today's report for August activity is broadly consistent with a theme that has been in place for the better part of the past two years: the economy is still expanding even if the factory sector is not,” wrote Wells Fargo economists Tim Quinlan and Shannon Seery Grein.

Economists said the 澳洲幸运5官方开奖结果体彩网:manufacturing sector wasn’t likely to rebound until the Federal Reserve lowers 澳洲幸运5官方开奖结果体彩网:⛎interest rates from their decades-high levels. Manufacturers often need loans to purchase material💦s, inventory, and capital equipment for factories, and higher borrowing costs oඣften impact industrial produꦺction.

“The Fed is 澳洲幸运5官方开奖结果体彩网:expected to cut rates in September, but the manufacturing index will likely stay subdued until rates come down meaningfully,” wrote Priscilla Thiagamoorthy, BMO Capital Markets senior economist.