Manufacturing Sector Growth Slows in August

September 4, 2007--Economic activity in the manufacturing sector expanded in August but at a slower pace than in July, according ot the Institute for Supply Management. The association’s manufacturing index fell to 52.9% in August from 53.8% in July.

Readings over 50% in the index indicates expansion, reading below 50% indicate contraction. The ISM has been above 50% for seven months.

Economists had forecast a decline to 53.0% during the month.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Viewed from the manufacturing sector, the overall economy continues to grow at a significant rate. In comparing August to July, the rate of growth in manufacturing was slightly less but continues the expansion, although at the slowest pace in the past five months. Both the New Orders Index and the Production Index are encouraging for continuing growth as we head toward the fourth quarter of 2007."

The 10 industries reporting growth in August — listed in order — are: Nonmetallic Mineral Products; Petroleum and Coal Products; Food, Beverage & Tobacco Products; Wood Products; Chemical Products; Apparel, Leather and Allied Products; Fabricated Metal Products; Textile Mills; Electrical Equipment, Appliances and Components; and Furniture & Related Products.