Economy grew again in August, ISM finds, but momentum faded

Manufacturing growth slowed in August as new orders declined

The Institute for Supply Management (ISM) reported that the manufacturing sector grew in August, but at a slower pace than in July. The ISM's manufacturing index fell to 59.1 in August from 61.3 in July. New orders declined, and production and employment growth slowed.

Despite the slowdown, the manufacturing sector remains in expansion territory. Any reading above 50 indicates growth. The ISM's index has been above 50 for 28 consecutive months.

What does this mean for the economy?

The ISM's manufacturing index is a leading indicator of economic growth. A decline in the index suggests that economic growth may slow in the coming months. However, it is important to note that the manufacturing sector is only one part of the economy.

Other sectors, such as services, may continue to grow at a faster pace. The overall economy is still growing, but the pace of growth may slow in the coming months.

What are the factors that contributed to the slowdown in manufacturing growth?

There are several factors that may have contributed to the slowdown in manufacturing growth. One factor is the global trade war. Tariffs and other trade barriers have made it more expensive for businesses to import and export goods.

Another factor is the slowing global economy. Economic growth in China and other major economies has slowed in recent months. This has reduced demand for manufactured goods.

What does the future hold for the manufacturing sector?

The future of the manufacturing sector is uncertain. The global trade war and the slowing global economy are major challenges for the sector. However, the manufacturing sector is still a vital part of the U.S. economy.

The sector employs millions of workers and contributes trillions of dollars to the economy. The manufacturing sector is likely to continue to grow in the long term, but the pace of growth may be slower than in the past.