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flag U.S. manufacturing continues to contract, but new orders indicate potential future growth.

flag The ISM's August manufacturing PMI rose slightly to 48.7, indicating a sixth consecutive month of contraction in U.S. manufacturing. flag New orders saw a significant uptick, rising to 51.4, suggesting increased future demand. flag However, production fell to 47.8, and employment remained weak at 43.8. flag Despite these mixed signals, 69% of manufacturing GDP still contracted in August. flag The AI spending boom is helping offset some of the drag from tariffs. flag Economists expect goods prices to rise further in the coming months.

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