US ISM Manufacturing PMI (August)

What it means

The ISM Manufacturing PMI surveys purchasing managers to gauge whether US factory activity is expanding or shrinking. A reading above 50 means expansion; below 50, contraction. August's 54.6% was down from July's 55.6% and missed the 55.2% consensus. Sub-components also cooled: new orders fell to 53.7 from 56.7, and employment slipped to 51.2 from 52.8, while prices paid stayed elevated at 71.1%.

What it moves

A weaker-than-expected print tends to cool growth optimism, which can pressure the dollar and industrial/cyclical stocks while supporting Treasury bonds (lower yields) as markets price in a higher chance of Fed rate cuts. Commodity-linked currencies (like the Australian or Canadian dollar) often soften too, since a slower US manufacturing pulse signals weaker global demand ahead.

Affected markets

• US Dollar (DXY) ↓ — Weaker growth data reduces yield support for the dollar
• US equities (industrials/cyclicals) ↓ — Signals slowing factory-sector momentum
• US Treasury yields ↓ — Softer growth data raises expectations of Fed rate cuts
• Commodity-linked currencies (AUD, CAD) ↓ — Weaker US manufacturing demand points to softer global trade and commodity demand