Growth reported in U.S. manufacturing during August
It is no secret that the manufacturing industry throughout the U.S. – as well as Canada, Australia, Japan and elsewhere in the world – has been subject to a series of setbacks in recent months. However, a small but promising – and entirely unexpected – amount of growth in the U.S. manufacturing sector may provide indication of a resurgence throughout the field, according to Bloomberg.
The news source reports that this development may have been caused in part by a drop in commodity prices and a slow but steady recovery in aspects of the manufacturing industry tangential to the natural disaster in Japan that took place earlier this year.
According to the figures from the Institute for Supply Management’s factory index, manufacturing actually fell from 50.9 in July to 50.6 last month. In spite of this, the drop is being characterized as growth because it contradicted estimates stating that the ISM index would drop to 48.5.
Concurrent with the positivity of the ISM numbers, the values of the U.S. dollar and Treasury Department bonds rose, while some American stocks rose and others fell.
Barron’s reports that the ISM index’s results are a relief after a report from the Philadelphia Federal Reserve index earlier in August reported a figure of negative 30.7.