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![Data about the US economy has been uneven, leaving markets speculating about the timing of another rate hike [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/09/214765517_8-e1472773564316.jpg)
Data about the US economy has been uneven, leaving markets speculating about the timing of another rate hike [Xinhua]
The manufacturing index fell 3.4 points from its July 52.6 level to 49.4 in August, the ISM survey reported on Thursday.
The drop, which ran contrary to market expectations, reverses five months of continuous growth and comes in at the lowest level since February.
A reading above 50 indicates growth, but below that marker indicates contraction.
It puts a dent in forecasts for a Federal Reserve interest rate hike in October.
The ISM report appears to bring Federal Reserve chief Janet Yellen’s fears to the fore.
In her latest speeches on the health of the US economy, she had expressed concern that productivity was low.
This comes in line with Federal Reserve Bank of San Francisco President John Williams’s that the US economy had settled into a ‘low-productivity and low-growth’ pattern and that central banks needed to look beyond interest rates to find new ways to boost growth.
Read more: US data buoys Asian stocks
Analysts will now be looking to Friday’s jobs report for August for further indication on how soon the Fed will raise interest rates.
July’s data was encouraging as it showed that the US economy had added 255,000 jobs that month.
The BRICS Post with inputs from Agencies
