US manufacturing remains robust, but jobs market stays subdued
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https://think.ing.com/snaps/us-manufacturing-remains-robust-but-jobs-market-stays-subdued/
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US manufacturing remains robust, but jobs market stays subdued
The US manufacturing sector remains strong despite ongoing challenges in the jobs market, as demonstrated by the latest ISM manufacturing index reading of 54.6, which, while slightly below expectations, underscores solid growth in production. Per the full note [source], this is reinforced by substantial investment in technology-related capital expenditures, indicating a robust outlook for manufacturing. However, the subdued job creation and moderate wage pressures raise concerns about overall economic strength, particularly as the Fed weighs rate hikes later this month. Market participants should remain vigilant as the current pricing implies a 25bp hike in September is still on the table.