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Manufacturing expands after 18 months

September 01, 2009
Staffing Industry Analysts North American Daily News

The U.S. manufacturing sector expanded in August following 18 months of contraction, according to the Institute for Supply Management's key purchasing managers' index for manufacturing released today.

In August, the index reached a level of 52.9, up from 48.9 in July. Readings of more than 50 indicate expansion.

"The year-and-a-half decline in manufacturing output has come to an end as 11 of 18 manufacturing industries are reporting growth when comparing August to July," said Norbert Ore, chair of the institute's manufacturing business survey committee. "While this is certainly a positive occurrence, we have to keep in mind that it is the beginning of a new cycle and that all industries are not yet participating in the growth."

However, the employment portion of the index continued to contract in August but at a slower rate.