Growth in the U.S. manufacturing sector rose at its slowest pace in five months. The Institute for Supply Management reported today the key purchasing managers index for manufacturing fell to 52.9 in August from 53.8 in July. Yet a PMI in excess of 41.9, over a period of time, generally indicates an expansion of the overall economy, according to the ISM. Meanwhile its manufacturing employment index rose to 51.3 in August from 50.2 in July. A reading over 50 indicates that the manufacturing economy is generally expanding.

"Viewed from the manufacturing sector, the overall economy continues to grow at a significant rate," said Norbert Ore, chair of the institute's manufacturing business survey committee. "In comparing August to July the rate of growth in manufacturing was slightly less but continues the expansion, although at the slowest pace in the past five months. Both the new orders index and production index are encouraging for continuing growth as we head toward the fourth quarter of 2007."