WASHINGTON: The US manufacturing sector continued to grow in August, but the pace was the same as the prior month, according to an industry survey released Thursday.
The Institute for Supply Management said its manufacturing index remained at 52.8 percent, the same as July, beating expectations and staying above the 50-percent threshold indicating expansion.
The figure indicated a 27th month of growth in a row, and the rate was at its lowest since June 2020 for a third month.
The continued albeit low growth comes as pricing pressures have eased a bit.
“New order rates returned to expansion levels, supplier deliveries remain at appropriate tension levels and prices softened again,” said ISM manufacturing survey chair Timothy Fiore.
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While “sentiment remained optimistic regarding demand,” survey respondents indicated unease about a softening economy, he added.
On the employment front, companies continued to hire at strong rates in August, with respondents reporting lower rates of quitting, in a sign that labor market tensions are starting to ease.
“Overall, manufacturing is still growing, but the sector continues to face hurdles from slowing demand as well as potential supply shocks,” said Rubeela Farooqi, chief US economist for HFE.
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