- U.S. Factory Activity Rises to 6-Year High in August
The U.S manufacturing production rose in August to the fastest pace in six years.
According to the Institute for Supply Management, factory index increased from 56.3 in July to 58.8 in August, the highest advance in six years.
Employment in the manufacturing sector rose from 55.2 in July to 59.9 in August. The highest since June 2011.
However, new orders fell slightly to 60.3 from 60.4. While order backlog gauge rose to 57.5, a level last attained three years ago.
Growing consumer spending and business investment are aiding growth in the manufacturing sector, and expected to further enhance third quarter economic growth. Especially as backlog orders rose to three years high in August.
Fourteen of the 18 sub-industries surveyed by the Institute recorded growth in August, including the machinery, petroleum and coal products, and computer and electronic products sectors.
August was “a really strong month,” said Timothy Fiore, chair of ISM’s manufacturing business survey committee. He further stated that growth was mainly driven by the top manufacturing sectors.