In August, the S&P Global flash PMI fell to 48, indicating a significant contraction in manufacturing activity last month. Each of the five components of the manufacturing PMI – including New Orders, Production, Employment, Supplier Deliveries, and Inventories, experienced a decline.
The Purchasing Managers Index, or PMI, is an economic indicator that surveys manufacturing firms every month to gauge the overall level of manufacturing activity in the U.S. economy. Numbered between 0 and 100, a PMI over 50 means the manufacturing sector is expanding while a reading under 50 represents a contraction.
Could a contraction in manufacturing point to a larger and more broad-based economic slowdown in the United States?
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