ISM and PMI Manufacturing Index: Manufacturing growth is "very strong" and "accelerating"in August

Manufacturing growth is very strong based on both Markit's sample and, more prominently, ISM's sample where the composite index jumped to 59.0 from 57.1 in July. New orders headline August's strength, rising to an exceptional 66.7 vs an already very strong 63.4 in July. Production is at 64.5, vs July 61.2, with employment steady and strong at 58.1 vs 58.2. Other readings include strength for export orders, at 55.0 for a 2.0 point gain that confirms strength in Markit's report, and moderate but non-accelerating pressure for input prices which are at 58.0. This report raises the outlook for manufacturing, a sector that is helping to drive the economy forward.

Growth in Markit's US manufacturing sample accelerated in August, to a final 57.9 vs a mid-month reading of 58.0 and a final July reading to 55.8. The report notes strength for new orders, especially a pickup for export orders, as well as strength for production and employment. Input prices rose though prices for finished goods were little changed. This report points to strength for the more closely watched ISM manufacturing report which will be posted at 10:00 a.m. ET this morning.