US manufacturing in steepest downturn since 2009 crisis, S&P Global says
By Alexander Bueso
Date: Thursday 01 Sep 2022
(Sharecast News) - US manufacturing sector conditions remained relatively "muted" last month amid a third consecutive decline in new orders while production fell at its steepest rate since June 2020 a closely followed survey showed.
Cost and price pressures on the other hand moderated further and confidence in the outlook for the year ahead hit a three-month high.
S&P Global revised its factory sector Purchasing Managers' Index for August from 51.3 to 51.5 - its lowest level since July 2020 - versus a July reading of 52.2.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: "Barring the initial pandemic lockdowns months, this is the steepest downturn in US manufacturing seen since the global financial crisis in 2009.
"Worryingly, the sharpest drop in demand was recorded for business equipment and machinery, which points to falling investment spending and heightened risk aversion.
"Similarly, payroll growth slowed close to stalling, reflecting a growing reticence to expand workforce numbers in the face of a deteriorating demand environment
Selling prices rose at their weakest pace in 18 months as companies passed slower cost growth on to customers with operating expenses recording their softest increase since January 2021.
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