Key US Manufacturing Gauges Contract in August, Signal Broader Industry Slowdown

Two key U.S. manufacturing gauges contracted in August, signaling a possible broader industry slowdown. The Federal Reserve Bank of New York’s Empire State Manufacturing Survey—a monthly survey of 200 companies—contracted for the ninth consecutive month in August as business activity in the state weakened. The report identified a decline in new orders and stagnating shipments. Employment levels fell while hours worked cratered. Input price pressures rose at a slower pace, and selling price increases were little changed. Despite the poor reading, companies were optimistic that business conditions will improve over the next six months. The Philadelphia Fed’s Manufacturing Business Outlook—a monthly survey of roughly 250 manufacturers in Delaware, eastern Pennsylvania, and southern New Jersey—unexpectedly turned negative for the first time since January and eased from a three-month high....