ISM Manufacturing Index Contracts in August

U.S. manufacturing fell slightly into contraction levels in August, the Institute for Supply Management said Tuesday.

ISM’s monthly factory services index slipped to a reading of 49.9, from a 50 reading in July, he group said. Figures of more than 50 indicate expansion; below that shows contraction.

Economists had forecast no change in the reading, Bloomberg reported. The index had hit a record low of 44.6 in January.

The purchasing managers’ gauge of new orders rose to 48.3, from 45, while the production reading slipped to 52.1, from 52.9, ISM said.

The factory index measures manufacturing components of the economy.