The U.S. manufacturing sector expanded at the fastest pace in more than six years last month according to the latest survey conducted by the Institute for Supply Management.
The ISM's Purchasing Managers Index grew more modestly in July but rebounded hit an index of 58.8 percent in August — the highest level since April 2011. The index remained above 50 percent, which reflects manufacturing growth, for the 12th consecutive month and translated to overall economic growth for the 99th month in a row.
The monthly poll of supply executives also indicated that production and new manufacturing orders continued to grow at robust paces with indexes of 61 percent and 60.3 percent, respectively.
The latter number contributed to growing order backlogs, while deliveries by suppliers appeared slower last month.
"Production remains at strong growth levels in most industries in spite of supplier delivery constraints," ISM Manufacturing Business Survey Committee Chairman Timothy Fiore said in a statement.
Manufacturing employment grew for the 11th consecutive month as the August index jumped by 4.7 percentage points to nearly 60 percent.
The prices index showed no change but continued an 18-month pattern of rising prices by remaining at 62 percent.
Inventories, which were flat in July, climbed by 5.5 percentage points last month; customer inventories, on the other hand, plummeted by 8 percentage points and registered an index of 41 percent.
Exports and imports each grew again in August — for the 18th and 7th consecutive months, respectively — but at slower paces than the July report.
