Manufacturing activity rebounded in August, with the Institute for Supply Management's index of manufacturing activity (PMI) increasing to a reading of 56.3, compared to 55.5 in July.
Any reading above 50 indicates growth in the sector, however, and August represents the 13th straight month of growth in manufacturing, according to the latest Manufacturing ISM Report on Business.
"Manufacturing activity continued at a very positive rate in August as the PMI rose slightly when compared to July," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "In terms of month-over-month improvement, the Production and Employment Indexes experienced the greatest gains, while new orders continued to grow but at a slightly slower rate. August represents the 13th consecutive month of growth in U.S. manufacturing."
Eleven of the 18 manufacturing industries are reporting growth in August. The industries reporting contraction in August are furniture and related products; petroleum and coal products; nonmetallic mineral products; plastics and rubber products; and machinery.
Respondents had mixed reactions to manufacturing activity, with some still experiencing slow order rates, while others say business is still strong.
The U.S. Census Bureau also released its full report on July manufacturers' shipments, inventories, and orders this week. New orders for manufactured durable goods were up 0.4 percent in July, revised from the previously reported 0.3 percent boost. July accounted for $193 billion in new orders for manufactured durable goods, compared to a 0.2 percent decrease in June.
Overall, new orders for manufactured goods jumped $0.6 billion, or 0.1 percent, in July to $409.5 billion. This followed a 0.6 percent June decrease.
August Already Shows Signs of Growth in Manufacturing
Manufacturing activity rebounded in August, with the Institute for Supply Management's index of manufacturing activity (PMI) increasing to a reading of 56.3, compared to 55.5 in July
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