The overall economy grew for the sixty-third straight time, while the manufacturing sector expanded for the fifteenth consecutive month, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index gained to 59.0 in August from 57.1 in July.
Economists polled by Thomson Reuters predicted the index would slip to 56.9.
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 decreased to 58.0 from 59.5. The employment index dipped to 58.1 from 58.2.
The production index climbed to 64.5 from 61.2, the new orders index rose to 66.7 from 63.4; the supplier deliveries index slid to 53.9 from 54.1; the export orders index gained to 55.0 from 53.0; and the imports index rose to 56.0 from 52.0.
The inventories index rose to 52.0 from 48.5; the customers' inventories index jumped to 49.0 from 43.5; and backlog of orders increased to 52.5 from 49.5.
Respondents' comments included:
"Business is looking good for food manufacturing. Packaging materials prices are staying in check, minimum wage is up a bit, but manageable." (Food, Beverage & Tobacco Products)
"The commercial building business is good, our business is up." (Fabricated Metal Products)
"Overall business conditions are flat. World issues taking a toll on business. Consumers are cutting back on spending." (Transportation Equipment)
"Overall business is improving. Order backlog is increasing. Quotes are increasing. Much more positive outlook in our sector." (Electrical Equipment, Appliances & Components)
"Business in the energy sector continues to remain very robust with no signs of backing off in the near future." (Computer & Electronic Products)
"Demand in the United States is consistent and geopolitics remain a concern." (Chemical Products)
"International markets are slower due to Euro holidays, political unrest and slowing Chinese markets. North American business off slightly." (Wood Products)
"Business is strong. Labor is becoming a difficult issue." (Furniture & Related Products)
"Demand is strong. Numbers are up over last year." (Machinery)
"Strongest month in years. Business is solid...Awesome!" (Primary Metals)
