2018 Economic Calendar
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PMI Composite FLASH  
Released On 8/23/2018 9:45:00 AM For Aug, 2018
PriorConsensusConsensus RangeActual
Composite – Level55.9 55.6 54.0  to 56.3 55.0 
Manufacturing – Level55.5 55.1 54.8  to 55.9 54.5 
Services — Level56.2 56.0 54.0  to 57.0 55.2 

Highlights
Reflecting moderation in employment and new orders, growth slowed more sharply than expected in the initial PMIs for August especially manufacturing which came in at 54.5 vs Econoday's consensus for 55.1 and vs 55.5 in July's flash. August's reading indicates the slowest rate of growth for this manufacturing sample since November last year.

Services also slowed, to 55.2 vs expectations for 56.0 and July's flash score of 56.2. This is the slowest growth rate since April and partly reflects the slowest rate of hiring in eight months. The composite reading, which combines manufacturing and services, came in at 55.0 which is 6 tenths under the consensus and 9 tenths under the July flash.

Manufacturing details include slowing job creation and slower growth rates for output and new orders. Capacity stress is still a factor with delivery times lengthening with shortages of truck drivers a key issue. New orders in the service side of today's results are the slowest of the year with backlogs contracting at the fastest rate since March last year.

A benefit of the slowing is an easing in cost pressures to the least severe rates so far this year. Despite the easing, the samples continue to report rising prices for steel-related items along with rising wage pressures. And the service sample is reporting the fastest rise in selling prices in four years.

Indications in these reports hit a peak in May and have been slowing since. Yet rates remain constructive for these samples which generally trend below the strength of the rival samples from the ISM.

Consensus Outlook
Moderate-to-strong has been the signal from the PMIs with capacity constraints cited as a factor that is limiting growth. The consensus for August's flash PMI composite is 55.6 with PMI services at 56.0 and PMI manufacturing seen at 55.1.

Definition
The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector output by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around 10 days ahead of the final report and are typically based upon around 85 percent of the full survey sample. Results are synthesized into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster output is growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by Markit.  Why Investors Care
 

2018 Release Schedule
Released On: 1/242/213/224/235/236/227/248/239/2110/2411/23
Release For: JanFebMarAprMayJunJulAugSepOctNov
 


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