U.S. Manufacturing Grows for First Time in 19 Months

IndustryWeek (9/1, AFP) – The Institute of Supply Management said its index of the factory sector, also known as the purchasing managers index, jumped to 52.9% from 48.9% in July. Any number above 50 indicates growth.The details of the ISM survey showed strong gains in orders even though employment continued to decline. The new orders sub-index jumped to 64.9% in August from 55.3%, indicating faster growth, the ISM said. Similarly, the production index increased to 61.9% from 57.9%. The employment index rose to 46.4% from 45.6%, suggesting industries are still cutting jobs but at a slower pace.

The ISM said 11 of the 18 manufacturing industries reported growth in August. These included textiles; apparel and leather products; paper products; miscellaneous manufacturing; printing and related activities; computer and electronic products; transportation equipment; nonmetallic mineral products; electrical equipment, appliances and components; fabricated metal; and chemicals. The six industries reporting contraction in August were primary metals; plastics and rubber; furniture; wood products; food, beverage and tobacco; and machinery.