The overall economy grew for the seventy-fifth straight time, while the manufacturing sector expanded for the thirty-second consecutive month, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index decreased to 51.1 in August from 52.7 in July.
Economists polled by Thomson Reuters predicted the index would slip to 52.6.
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 slid to 39.0 from 44.0. The employment index fell to 51.2 from 52.7.
The production index dropped to 53.6 from 56.0, the new orders index fell to 51.7 from 56.5; the supplier deliveries index gained to 50.7 from 48.9; the export orders index decreased to 46.5 from 48.0; and the imports index slid to 51.5 from 52.0.
The inventories index declined to 48.5 from 49.5; the customers' inventories index dropped to 48.5 from 49.5; and backlog of orders rose to 46.5 from 42.5.
Respondents' comments included:
- "Falling crude oil prices are benefiting all resin based purchases as well as positively impacting fuel surcharges for inbound products." (Food, Beverage & Tobacco Products)
- "We are oversold." (Paper Products)
- "Business is still strong but has slowed slightly." (Transportation Equipment)
- "Modest growth slightly ahead of GDP. Optimistic for the remainder of the year as we have little international exposure." (Chemical Products)
- "FX [Foreign Exchange] continues to be a challenge, especially in Europe. Overall though, the mood is fairly upbeat regarding H2 [second half of 2015] as we ramp up for a new product launch." (Computer & Electronic Products)
- "Our business is good due to the increase in commercial construction." (Fabricated Metal Products)
- "Raw metals price decreases will impact our business favorably." (Miscellaneous Manufacturing)
- "Business is guarded but steady. Margins are tight. Markets are very competitive. China is lackluster." (Wood Products)
- "Automotive companies are investing heavily in upgrading their equipment." (Machinery)
- "Business is strong and doing well. Labor continues to be a struggle to find." (Furniture and Related Products)
