The ISM Manufacturing Index (PMI) stayed steady in August, coming in at 52.8, the exact same as July. This marks the 27th consecutive month of growth. Of note this month are comments that supplier deliveries are showing some improvement, commodity prices are continuing to soften, and order backlogs are still growing. 

Consumer Confidence rebounded in August, registering a 103.2 mark relative to July’s 95.7 reading. Much of the credit for improved consumer sentiment is attributed to falling gas prices. The conditions for the balance of the year are unpredictable, as higher interest rates and inflation continue to present limits on spending.

WTI Oil hovered in a relatively narrow price band in August, starting at $93.89/barrel and settling at $89.55 per barrel. With renewed restrictions being implemented to curtail COVID spread in China, worry that these measures might impact the global economy bled over to the price of oil. This, combined with increases on the supply side, has analysts forecasting prices averaging in the current $90 per barrel range for the next couple of months.

The online US Oil Rig Count is at 760 which is down 7 compared to last month's report and up 263 from September 3 of 2021 (a high of 1609 in October of 2014 before oil pricing dropped below $20 per barrel at the end of that year). This key and leading indicator shows the current demand for products used in drilling, completing, producing, and processing of hydrocarbons which all of us use every day as fuel sources and finished products.