In August, the US ISM manufacturing index stood at 47.6 points, an improvement from 46.4 in July but still below the 50 that separates contraction and expansion.
However, this is the highest value in the last six months, thanks to an increase in the production index, from a three-month high to 50, together with progress in the parameters relating to employment and supplier deliveries.
Although the general manufacturing activity index has been contracting for ten consecutive months, the data suggest that the situation is starting to stabilise, albeit at weak levels.
Despite continued weakness in orders, producers are starting to see some signs of relief. Companies have made significant progress in reducing excess inventory and consumer spending on merchandise is on the rise.