ISM Factory Index Shows Manufacturing Expansion

U.S. manufacturing showed expansion in August for the first time in more than a year and half, the Institute for Supply Management said Tuesday.

ISM’s monthly factory services index rose to a reading of 52.9, from 48.9 in July. Figures of more than 50 indicate expansion, while below that show contraction.

It was the first time the index has shown expansion since January 2008. Economists had forecast the index would rise to 50.5, Bloomberg reported.

ISM’s factory index measures manufacturing components of the economy, which makes up about an eighth of the U.S. economy.