Following the 10 a.m. ET release of the data, gold prices climbed to $4,366.69 per ounce, paring back some of the day's 1.86% losses. The ISM report highlights a broader deceleration in the industrial engine, with key gauges for New Orders, Backlog, and Imports all losing momentum. Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, noted that while the sector remains in expansion, growth is becoming increasingly fragile.

Internal metrics underscore the cooling trend. The New Orders Index slipped to 53.7 percent from 56.7 percent in July, marking a three-percentage-point decline. Similarly, the Employment Index fell to 51.2 percent, and the Backlog of Orders Index dropped to 51.8 percent. Despite the softening across production and labor measures, inflation remains a persistent factor; the Prices Index held firm at 71.1 percent, matching the elevated levels observed throughout the previous month. Only the Supplier Deliveries index showed an uptick, rising 0.4 percentage points, a signal that supply chain friction persists.