Tempe, AZ, September 1--Factory activity in the U.S. cooled off in August, a closely watched private survey found, as new orders slackened and production slowed down.
The Institute for Supply Management said that its manufacturing survey for August came in at 59.0, versus a reading of 62.0 in August. Economists surveyed by Dow Jones Newswires and CNBC had forecast a reading of 60.0. While the headline number receded, any reading above 50 indicates expansion in the factory sector, and the ISM noted that growth was "still quite positive."
Some weaker reading in regional manufacturing surveys last month had led many forecasters to mark down their expectations for the ISM's report. Tuesday, the Purchasing Management Association of Chicago factory index fell to 57.3 in August from 64.7 in July, indicating less-robust growth. Earlier surveys by the Philadelphia and New York branches of the Federal Reserve also showed manufacturing slipping in midsummer.
Within the report, the new-orders index slid to 61.2 from 64.7 in July, while production fell to a 59.5 reading from 66.1. The employment reading contracted slightly to 55.7 from 57.3 in July. The inventories yardstick edged higher, however, moving to 51.7 from 49.9.
