Activity in the U.S. manufacturing sector expanded faster than estimated in the month of August, the Institute for Supply Management revealed in a report on Friday.
The ISM said its purchasing managers index climbed to 58.8 in August from 56.3 in July, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 56.5.
The bigger than expected increase lifted the purchasing managers index to its highest level since reaching 59.1 in April of 2011.
The jump by the headline index was partly due to a notable acceleration in the pace of job growth in the sector, as the employment index surged up to 59.9 in August from 55.2 in July.
With the significant increase, the employment index climbed to its highest level since reaching 61.3 in June of 2011.
The report said the production index also inched up to 61.0 in August from 60.6 in July, while the new orders index edged down to 60.3 from 60.4.
On the inflation front, the ISM said the prices index registered 62.0 in August, unchanged from the previous month.
"Comments from the panel reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in August," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
The ISM is scheduled to release a separate report on activity in the service sector in the month of August next Wednesday.
by RTT Staff Writer
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