ISM Factory Index Slips But Shows Expansion

An index of U.S. manufacturing activity declined slightly in September but showed overall expansion, the Institute for Supply Management said Thursday.

ISM’s monthly factory services index slipped to a 52.6 reading, from 52.9 in August, ISM said in its monthly report. Figures of more than 50 indicate expansion, while below that show contraction.

While the rate of growth moderated slightly when compared to August, the recovery broadened as the number of industries reporting growth increased from 11 to 13, said Norbert Ore, chair of ISM’s business survey committee.

Both new orders and production are growing, but at a slower rate when compared to August, he said in a statement on the group’s Web site.

ISM’s factory index measures manufacturing components of the economy.