4 Stocks To Bet On Despite Slowdown In Manufacturing

 | Sep 10, 2019 09:41PM ET

After exhibiting growth for 35 consecutive months, the U.S manufacturing sector contracted in August primarily owing to the U.S.-China trade turbulence. Per the Institute for Supply Management’s latest report, Purchasing Managers’ Index (PMI) for August declined to 49.1% from 51.2% in July — lowest reading since January 2016’s reading of 48%. Even though the manufacturing sector had shown signs of deceleration over the past four months, this was the first instance where the reading has fallen below 50.

Of the 18 manufacturing industries, nine reported growth in August. New Orders Index registered 47.2% in August, contracting from 50.8% in July, bringing an end to 43 months of continuous expansion. Production Index came in at 49.5% in August, down from the 50.8% registered in July, a decline following growth for 35 consecutive months. Employment Index registered 47.4% in August, down from July’s 51.7%. The index also contracted after 34 consecutive months of employment growth.

Notwithstanding the dip, the PMI has averaged 54% over the last 12 months ranging from a low of 49.1% to a high of 59.5%.

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