Eco Pulse

United States: more signs of easing in the labour market

09/22/2023
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The United States has observed an improvement in the business climate in August, which should postpone the risk of recession for a few more months. The ISM Manufacturing rose by 1.2 pp and reached 47.6. However, the index has been well in contraction territory since November 2022, the longest period since the GFC. The renewed decline in the “New Orders” sub-component (46.8) and the fact that no sub-component stands above the 50 threshold hint that the progress remains weak and insufficient to impulse a swift and sustainable return into the expansion zone. The ISM Non-Manufacturing climbed to 54.5 (+1.8 pp), an improvement broad-based across all of the main sub-components, with a notable jump in ‘Employment’ (54.7, +4.0 pp).