8:53 pm

  Local News
  State / National / World
  Opinion / Letters
  Arts / Entertainment
  Submit Event
  Comics / Games
  DJ Designers
  Advertise With Us
  About Us
U.S. manufacturing grows at fastest pace in 3½ years
September 02, 2014, 05:00 AM The Associated Press

WASHINGTON — U.S. manufacturing grew in August at the strongest pace in more than three years as factories cranked out more goods and new orders rose.

The Institute for Supply Management's manufacturing index rose to 59 from 57.1 in July, the ISM said Tuesday. That was the highest reading since March 2011. Any measure above 50 signals that manufacturing is growing.

Tuesday's ISM report coincides with other signs that manufacturing is helping drive the U.S. economy's improvement. Factories are benefiting from strong demand for aircraft, furniture, and steel and other metals. The boost from manufacturing has helped offset slower homebuilding, a slowdown in consumer purchases and weaker spending on utilities and other services.

The ISM's gauge of production rose to the highest level in four years, and a measure of new orders reached its highest point in 10 years. That suggests that the sector should grow further in coming months. Factories also added jobs last month, though at a slightly slower pace than in July.

U.S. manufacturers face some challenges overseas. A measure of export orders rose, but comments from several respondents to ISM's survey said turmoil in Ukraine and slower growth in China were weighing on business.

Bradley Holcomb, chair of the ISM's manufacturing survey committee, said a big jump in orders for aircraft reported by Boeing in July could be feeding through to its suppliers and boosting the ISM's index of new orders.

Still, the strength in new orders is "broad-based at this time," Holcomb said on a conference call with reporters.

The Federal Reserve has reported that factory output rose 1 percent in July, the sixth straight monthly gain. Production of autos, furniture, textiles and metals all rose.

Orders for big-ticket factory goods such as autos and appliances also soared in July, though the gain reflected mainly a jump in demand for Boeing's commercial aircraft. Such orders tend to be volatile from month to month.

Excluding the transportation category, orders actually slipped last month. And a key category that serves as a proxy for business investment plans fell 0.5 percent. But that dip followed a big 5.4 percent gain the previous month.

Greater consumer spending may be needed to keep driving factory growth. Consumers cut back their spending 0.1 percent in July, the government said, the first decline since January. The decline was led by lower spending on autos.

The U.S. economy grew at a 4.2 percent annual rate in the April-June quarter, the government said last week. That was much better than the 2.1 percent contraction in the first three months of the year.



Tags: orders, manufacturing, percent, month, spending, measure,

Other stories from today:

U.S. construction spending up 1.8 percent in July
U.S. manufacturing grows at fastest pace in 3½ years
U.S. home prices rose at slower pace in July
Video purports to show beheading of U.S. journalist
PG&E fined $1.4B for deadly 2010 gas line blast

Print this Page Print this Page  |  Bookmark and Share
<< Back

Daily Journal Quick Poll
Do you agree with Gov. Brown signing The End of Life Option Act, which allows terminally ill patients to end their lives with the help of a doctor?

Yes, it will allow those with terminal conditions to die with dignity
No, doctors are sometimes too hasty in determining someone is terminally ill
Not sure


United States, 11 Pacific Rim countries reach trade deal
WASHINGTON — Having hammered out an ambitious trade deal with 11 Pacific Rim countries, the Obama ..
California governor signs right-to-die legislation
SACRAMENTO — Gov. Jerry Brown signed legislation Monday allowing terminally ill people in the nati..
US commander says Afghans requested US airstrike in Kunduz
WASHINGTON — Afghan forces who reported being under Taliban fire requested the U.S. airstrike that..
Three share Nobel medicine prize for tropical disease drugs
STOCKHOLM — A Chinese scientist who turned to ancient texts to discover a powerful malaria drug sh..
More >>  

©2015 San Mateo Daily Journal
Burlingame newspaper