Credit: Shutterstock photoThe U.S. ISM Manufacturing Index surged to 59.0% in August, from 57.1% in July, ahead of the consensus estimate of 56.8%. This is the index's highest reading since March 2011, thanks mainly to jump in its new orders and production components.
Here are further details from the report:
· The New Orders Index jumped 3.3%% to 66.7%
· The Production Index also increased by 3.3% to 64.5%
· The Employment Index was at 58.1%, down 0.1%
· Inventories increased by 3.5% to 52.0%
This was the highest reading for New Orders index since April 2004 and the highest reading for Production index since May 2010. Of the 18 manufacturing industries tracked by ISM, 17 reported growth in August; only textiles reported a decline.
Per ISM, comments from the panel reflected a positive outlook mixed with caution over global geopolitical unrest.
The report confirms that the U.S. manufacturing activity has maintained its positive momentum.
Does the strong manufacturing report make you more bullish about economic growth in the third quarter?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
