The index of business activity in the U.S. manufacturing sector (ISM Manufacturing) in August 2019 fell to 49.1 points from 51.2 per item a month earlier, according to the Institute for supply management (ISM).

Analysts on average were expecting an increase in the index to 51.3 points.

The value of the indicator fell below the neutral 50 mark, which is the boundary between the decline and growth of business activity in the sector, for the first time from August 2016.

We expect the ISM index that tracks new orders in the US in August fell to 47.2 points from 50.5 points in July. The indicator of employment fell to 47.4 points from 51.7 points.

The growth of orders reported by the enterprise only 3 of 18 industries, growth of production – 4 industries, the growth of employment – 6.

The share of manufacturing sector accounts for about 12% of the us economy.

Also on Thursday it became known that the volume of construction spending in July rose by 0.1% compared with June, while experts had expected growth of 0.3%. In June, according to revised data, decreased by 0.7% in monthly terms rather than 1.3%.