ISM Manufacturing Index Falls to Three-Year Low

U.S. manufacturing activity fell to a three-year low in August, the Institute for Supply Management reported Tuesday.

ISM’s monthly manufacturing index reading declined to a 49.6 reading, from 49.8 in July. Figures lower than 50 indicate contraction.

Economists had forecast the index would rise to a reading of 50, Bloomberg reported.

The new orders index registered a 47.1 reading, down 0.9% from July, while the production index dropped 4.1% to a 47.2 reading.

The employment index remained in growth territory at a 51.6 reading but registered its lowest reading since November 2009, ISM said.

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