United States: Manufacturing builds on two-year high in August
September 3, 2013
In August, the ISM manufacturing index edged up to 55.7%, an increase over the 55.4% recorded in July. The increase countered market expectations of 54.0%. The index continues to build on the gains registered in the past four months and remains at its highest point in more than two years, reinforcing the notion that the U.S. economy is recovering.
Four of the five ISM indicators now sit above the 50% threshold indicating expansion. The rise in the new orders index was the most notable at 63.2%, while the supplier deliveries and inventories indices increased marginally. In contrast, the production and employment indices fell compared to the previous month.
FocusEconomics Consensus Forecast panelists project that industrial output will rise 2.8% this year, which is down 0.4 percentage points from last month's forecast. For 2014, panellists see industrial production accelerating to a 4.1% expansion.
Author: Carl Kelly, Economist