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TEMPE, AZ – Economic activity in the US manufacturing sector failed to grow in August, according to a poll of top supply executives.
The overall economy grew for the 82nd consecutive month, says the Institute for Supply Management, which takes the monthly poll.
The new orders index was 48.3%, up 3.3 points over July.
The PMI index was 49.9%, down 10 basis points from July. A reading above 50% indicates that the manufacturing economy is generally expanding; a PMI over 41.1%, over a period of time, generally indicates an expansion of the overall economy.
In a statement, ISM spokesman Norbert J. Ore, said, "The PMI indicates a slight decline in manufacturing during August. This continues the 2008 trend toward negligible growth or contraction each month, but ultimately results in very little overall change in the sector. This month's report is showing the first signs of lower prices as the Prices Index fell significantly, though still at an inflationary level. Export orders picked up additional momentum, and that is important to manufacturers as domestic demand remains soft for most industries."
Industries reporting growth in August included Computer & Electronic Products.
The average PMI this year (49.5%) corresponds to a 2.6% increase in real gross domestic product. |
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