Economic activity in the manufacturing sector expanded in September following one month of expansion in August, according to the Institute for Supply Management’s purchasing managers index for US manufacturing released today. September’s index reading was 51.5, up from August’s reading of 49.1%. Readings below 50.0, generally, indicate contracting.

The employment portion of the index rose to a reading of 49.7 in August from 48.3 in August, but still indicated contraction.

The employment measure marked the third straight month of decline, a sign manufacturers are laying off workers, reported US News & World Report. Bradley Holcomb, chair of the ISM manufacturing business survey committee, said factories are able to produce goods at current or even higher levels without additional workers, so the groups expect “little, if any, gains” in jobs.