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ISM manufacturing index hits six-year high

September 01, 2017

Economic activity in the manufacturing sector expanded in August at a faster pace than in July, according to the Institute for Supply Management’s purchasing managers index for US manufacturing. August’s index reading registered 58.8, up from July’s reading of 56.3.

Any reading above 50% generally indicates improving conditions.

The employment portion of the index jumped to a reading of 59.9 in August from 55.2 in July, also indicating expansion at an increased pace.

MarketWatch reports the overall reading was the highest reading since April 2011, and exceeded its poll of economist, which expected a reading of 56.8.

However, Reuters reported Timothy Fiore, chair of the manufacturing group at the Institute for Supply Management, warned on Friday that the damage from Hurricane Harvey to production plants and the shipping system in the Gulf of Mexico region will likely pinch the manufacturing sector nationwide in the near term.