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ISM Manufacturing Index Falls in August

Wall Street Journal (09/01/15) Eric Morath

Manufacturing activity grew at its slowest pace in more than two years, according to the Institute for Supply Management. The ISM’s manufacturing purchasing managers index fell to 51.1 in August from 52.7 in July. A reading above 50 indicates expansion. However, the reading was the weakest since May 2013. Economists polled by the Wall Street Journal had expected an August PMI of 52.7.

“Given the headwinds faced by manufacturers—the rise in the value of the dollar, slowing growth in China, and a volatile stock market—it may be that slow growth is about the best that can be expected in the near term,” says Don Norman, an economist with Manufacturers Alliance for Productivity and Innovation.

The ISM new orders index fell to 51.7 in August from 56.5 in July. The employment index declined to 51.2 from 52.7.