NEW YORK (AP) — Shares of U.S. manufacturers were mixed Tuesday after a trade group said the sector expanded in August, its first increase in 18 months.
The Institute of Supply Management, a trade group of purchasing executives, said its August manufacturing index rose to 52.9 from 48.9 in July. The better-than-expected reading is the first above 50, which indicates expansion, since January 2008.
The index, which includes new orders, production, employment, inventories, prices and more, is based on a survey of the Tempe, Arizona-based group's members.
"The year-and-a-half decline in manufacturing output has come to an end, as 11 of 18 manufacturing industries are reporting growth when comparing August to July," the ISM said. It added that, "The growth appears sustainable in the short term, as inventories have been reduced for 40 consecutive months and supply chains will have to re-stock to meet this new demand."
But ISM said that some sectors continue to lag, including primary metals; plastics and rubber products; furniture and related products; wood products; food, beverage and tobacco products; and machinery.
In morning trading, truck builder Paccar Inc. fell 33 cents to $35.84, vehicle parts supplier Commercial Vehicle Group Inc. dropped 4 cents to $4.44 while aluminum producer Kaiser Aluminum Corp. rose 42 cents to $33.
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