In August, US manufacturing activity continued to decline, marking the sixth consecutive month of contraction as reported by the ISM Manufacturing PMI, which came in at 48.7, below the expected 49.0. Despite the ongoing struggles, including concerns over tariffs and overall sector weakness, some factories reported benefits from an increase in artificial intelligence spending. The mixed state of the manufacturing sector raises questions about potential federal rate cuts as economic indicators reveal a complex landscape. The S&P Global final manufacturing PMI also showed slight improvements but fell short of initial estimates. Overall, the data highlights ongoing challenges for US manufacturers, exacerbated by external pressures.