U.S. August JOLTS report sees Job Openings rebound, ISM Manufacturing unchanged with mixed detail
August’s JOLTS report shows quite a sharp rise in job openings, by 329k to 8.04m, more than fully erasing a 199k decline in July but not June’s 320k drop. Trend remains negative, but only modestly. September’s ISM manufacturing index is unchanged at 47.2, with mixed detail.
Elsewhere in the JOLTS report hires fell by 99k and separations fell by 317k, leaving hires 320k above separations, an unusually sharp outperformance of the non-farm payroll which increased by 2142k in August. However much of the fall in separations comes from a 159k decline in quits, and that is not a positive signal.
In the ISM detail, new orders at 46.1 from 44.6 partially reversed an August dip, while production at 49.8 from 44.8 more than fully did so. Deliveries were firm at 52.2 from 50.5.
However sharp slippage was seen in inventories at 43.9 from 50.3 and employment, also at 43.9, from 46.0. This only provides some offset to the positive openings data in considering payroll estimates, where lower initial claims also suggests some improvement in September.
Prices paid do not contribute to the ISM composite, but are quite weak, at 48.3 from 54.0 the softest since December. Recent slippage in gasoline prices may be behind the weakness.
