Factory Growth Slows as Price Pressure Holds

U.S. manufacturing expanded for an eighth month in August, but the ISM index eased to 54.6 from 55.6. New orders slowed, while the prices index held at 71.1 and supplier deliveries slowed further. July job openings were little changed at 7.3 million, with hiring easing to 5.1 million. Federal Reserve Governor Michael Barr said rates should rise decisively if inflation fails to moderate.

For the Fly High universe, continued factory growth supports borrower revenues, but persistent input costs and slower supply chains can pressure earnings and keep rates restrictive. BDC asset yields may benefit from high short rates, while borrower interest expense, refinancing costs, and mortgage-REIT book values remain pressure points. Earnings are the primary dividend-support signal; credit, funding and book value are supporting evidence.

Watch Thursday’s services report and Friday’s employment data for confirmation that growth is holding without a broader inflation resurgence.

Sources

• Institute for Supply Management, August 2026 Manufacturing PMI, September 1, 2026
• U.S. Bureau of Labor Statistics, July 2026 JOLTS, September 1, 2026
• Federal Reserve, Governor Michael Barr remarks, September 1, 2026

This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.