Pricing Power
September 1, 2020
The US August ISM manufacturing index came in at 56.0 vs consensus for 54.5 and July’s 54.2. Like PMIs, the ISMs are presented as a ‘diffusion index’ with levels above 50 signaling expansion and the distance above or below 50 measuring velocity. The most startling component of today’s report were new orders rising +6.1 points to 67.6, its highest reading since December 2003. The ‘prices paid’ component was also interesting, increasing +6.3 points to 59.5, with the survey provider calling the move a ‘shift to seller pricing power.’
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