Purchasing Managers' Index Shows Economic Recovery in August

PMI Rises to 47.2%, Indicating Growth in Manufacturing

Businesses Report Increased Production and New Orders

The Purchasing Managers' Index (PMI) for August rose to 47.2%, indicating a recovery in manufacturing after months of decline.

The PMI measures the health of the manufacturing sector by tracking new orders, production, employment, delivery times, and inventories.

A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

**Key Findings:** - New orders increased for the first time in four months, suggesting increased demand for manufactured goods. - Production rose for the first time since February, indicating that businesses are ramping up output to meet demand. - Employment levels remained stable, suggesting that businesses are hesitant to lay off workers despite the economic downturn. **Impact on the Economy:** - The rise in PMI suggests that the manufacturing sector is starting to recover from the COVID-19 pandemic. - Increased production and new orders are expected to boost economic growth in the coming months. - Stable employment levels indicate that the manufacturing sector is providing job security during a challenging economic time. **Sources:** - [Institute for Supply Management (ISM)](https://www.ismworld.org/supply-management-news-and-reports/pmi/) - [Reuters](https://www.reuters.com/business/us-manufacturing-activity-contracts-less-than-expected-august-2020-09-01/) - [CNBC](https://www.cnbc.com/2020/09/01/us-manufacturing-pmi-august-2020.html)