The overall economy grew for the fiftieth-first straight time, while the manufacturing sector expanded for the third consecutive month, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index climbed to 55.7 in August from 55.4 in July.
Economists polled by Thomson Reuters predicted the index would fall to 54.0.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index increased to 54.0 from 49.0. The employment index slipped to 53.3 from 54.4 the prior month.
The production index slumped to 62.4 from 65.0, the new orders index rose to 63.2 from 58.3; the supplier deliveries index grew to 5231 from 52.1; the export orders index climbed to 55.5 from 53.5; and the imports index rose to 58.0 from 57.5.
The inventories index rose to 47.5 from 47.0; the customers' inventories index dropped to 42.5 from 47.5; and backlog of orders gained to 46.5 from 45.0.
Respondents' comments included:
"Slight improvements in both domestic and international sales." (Fabricated Metal Products)
"Business is slowing down, not sure why - but we may end up below last year's sales levels, whereas we had forecast 6.5 percent growth." (Miscellaneous Manufacturing)
"Material prices continue to be favorable; business is steady." (Paper Products)
"Slowing down slightly, but still stronger than last year by 20 percent." (Furniture & Related Products)
"Military slowdown affecting business." (Computer & Electronic Products)
"Summer seasonal businesses are doing well after a late start." (Printing & Related Support Activities)
"Still not seeing the year we had expected. Cautious about the balance of 2013." (Machinery)
"Tight government spending still affecting business." (Transportation Equipment)
"With improved weather outlook in the central states, agricultural prices are relaxing year over year." (Food, Beverage & Tobacco Products)
"We have benefitted from the Yen; seeing a 20 percent decrease in material costs from 2012 to 2013." (Chemical Products)
