S&P Global manufacturing PMI final August at 53.9, above preliminary 53.2

• The previous month's reading also stood at 53.9.
• The flash estimate for the manufacturing PMI had been 53.2.
• The final S&P Global manufacturing PMI for August came in at 53.9.

S&P Global provided further details on the survey findings:

• The S&P Global US manufacturing PMI remained at 53.9 in August, indicating a continued solid expansion in operating conditions.
• Output rose for the 15th straight month, though the pace of growth eased to its slowest since February, constrained by elevated prices and supply constraints.
• New orders increased at a solid rate, nearly unchanged from July, with demand primarily coming from domestic sources.
• Export orders fell for the 14th month in a row. Tariffs continued to hamper overseas sales, though a few companies noted better demand from Europe.
• Supply chain strains remained, with delivery times extending significantly. Firms pointed to the Middle East conflict and tariff uncertainty as causes.
• Manufacturers kept adding to inventories as a hedge against rising prices and delivery delays. Finished goods inventories grew at the quickest rate since May.
• Order backlogs increased for the sixth consecutive month, driven by higher order volumes and material shortages.
• Business optimism rose to a three-month peak, encouraging the strongest hiring pace seen so far in 2026.

Usamah Bhatti, an economist at S&P Global Market Intelligence, provided his assessment of the report:

"Growth in the US manufacturing economy remained welcome, but the August data point to some cracks in the sector's health. Data covering most of the second quarter and the period to August indicated that stock building was a key driver of sustained growth in manufacturing output and demand. Moreover, both output and new order growth slowed in August amid concerns that further price rises and material shortages would weigh on the sector. Indeed, although purchasing activity and preproduction inventories increased further, manufacturers continued to report difficulties sourcing and receiving raw materials because of supply delays and price rises. These pressures were commonly linked to the war in the Middle East, which has exacerbated existing supply and inflationary pressures from tariffs. There were, however, areas of encouragement for US goods producers. Business expectations for output over the year ahead improved from July to a three-month high, partly reflecting hopes for an end to the war and a smoother domestic policy path. Firms also noted that greater stability in conditions were likely to support business expansion and customer retention plans. In response, businesses raised employment at the strongest rate seen so far this year."