US MANUFACTURING output increased to its highest levels since May 2004, according to the Institute of Supply Management (ISM) Manufacturing Index, reports Bloomberg.
The ISM index is based on surveys of more than 300 manufacturing firms by the Institute for Supply Management (ISM) of Pheonix, Arizona.
The index monitors empmlk,loyment, production, inventories, new orders and supplier deliveries. A composite diffusion index monitors conditions in national manufacturing based on the data from these surveys.
The report shows factory demand is strengthening in the third quarter and adds to signals that the nearly decade-old expansion will hold up well in the second half of 2018.
The rise in the employment gauge also suggests manufacturers may record another month of solid payroll gains in Labor Department figures due Friday.
At the same time, the gauges of exports and imports may indicate that months of intensifying tensions are taking a toll on trade. Negotiations with Canada to modernise the North American Free Trade Agreement ended without a deal by Friday's deadline, though talks are scheduled to resume Wednesday.
President Donald Trump wants to move ahead with tariffs on US$200 billion of Chinese imports as soon as a public-comment period concludes, Bloomberg News reported last week, citing six people familiar with the matter.
'The economy is continuing to power forward,' said Timothy Fiore, chairman of the ISM manufacturing survey.
The gauge of employment climbed to six-month high of 58.5 from 56.5 while the gauge of supplier deliveries rebounded to 64.5, near the highest since 2004, from 62.1.
The index of factory order backlogs rose to 57.5 from 54.7 and the gauge of prices paid for materials fell to 72.1, lowest since December from 73.2.
Sixteen of 18 manufacturing industries reported growth in August; wood products and primary metals saw contraction, ISM said.
The ISM index is based on surveys of more than 300 manufacturing firms by the Institute for Supply Management (ISM) of Pheonix, Arizona.
The index monitors empmlk,loyment, production, inventories, new orders and supplier deliveries. A composite diffusion index monitors conditions in national manufacturing based on the data from these surveys.
The report shows factory demand is strengthening in the third quarter and adds to signals that the nearly decade-old expansion will hold up well in the second half of 2018.
The rise in the employment gauge also suggests manufacturers may record another month of solid payroll gains in Labor Department figures due Friday.
At the same time, the gauges of exports and imports may indicate that months of intensifying tensions are taking a toll on trade. Negotiations with Canada to modernise the North American Free Trade Agreement ended without a deal by Friday's deadline, though talks are scheduled to resume Wednesday.
President Donald Trump wants to move ahead with tariffs on US$200 billion of Chinese imports as soon as a public-comment period concludes, Bloomberg News reported last week, citing six people familiar with the matter.
'The economy is continuing to power forward,' said Timothy Fiore, chairman of the ISM manufacturing survey.
The gauge of employment climbed to six-month high of 58.5 from 56.5 while the gauge of supplier deliveries rebounded to 64.5, near the highest since 2004, from 62.1.
The index of factory order backlogs rose to 57.5 from 54.7 and the gauge of prices paid for materials fell to 72.1, lowest since December from 73.2.
Sixteen of 18 manufacturing industries reported growth in August; wood products and primary metals saw contraction, ISM said.