Report Shows Manufacturing Sector Still Growing

A monthly manufacturing survey from the Institute for Supply Management released Monday shows the factory sector is still growing, albeit modestly. The ISM’s U.S. manufacturing ISM index showed a reading of 51.6 for September, coming in above expectations after a reading of 50.6 in August. A reading above 50 indicates growth in the sector. Separately, a report on U.S. construction spending unexpectedly rebounded in August from a drop in July as outlays on state and local government building projects rose sharply, according to The Associated Press. The ISM report was good news for the economy. A collapse in the ISM’s manufacturing index in August, when it contracted for the first time since May of 2009, was one of the major drivers behind the turmoil that has gripped the financial markets over the late summer and early fall.

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