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DJ DATA SNAP/ISM Mfg: US Factory Growth Continues In August


madden

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NEW YORK (Dow Jones)--U.S. manufacturing activity expanded at a slightly slower pace in August, although the gains had positive implications for the broader economy, a report Tuesday said.

 

Private research group the Institute for Supply Management said that its index of manufacturing activity moved to 52.9 in August, from 53.8 in July and 56.0 in June. Readings over 50 point to an expansion of activity, while those under that number denote contracting activity. Economists surveyed by Dow Jones Newswires had expected the August index to come in at 53.0.

 

"Viewed from the manufacturing sector, the overall economy continues to grow at a significant rate," said Norbert Ore, who directs the survey for the ISM.

 

In the details of the report, the ISM said inflationary pressures continued to grow, with the prices index hitting 63.0, from 65.0 in July. The prices index stood at 68.0 in June.

 

Meanwhile, the new orders index came in at 55.3, after 57.5 the prior month, while August's production index was 56.1, versus 55.6 the month before.

 

The group also reported that hiring at factories grew more quickly, with the employment index coming in at 51.3, from 50.2. The inventories index came in at 45.4, down from July's 48.5.

 

 

 

Copyright © 2007 Dow Jones & Company, Inc.

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