Skip to Main Navigation

The Buffalo News

Web Search
by YAHOO! SEARCH

Factory activity, orders up in August

Published:September 2, 2009, 7:08 AM

Font Size:
  • E-mail
  • Share
  • Print

Key Links

Updated: August 21, 2010, 1:42 AM

NEW YORK — The U. S. manufacturing sector grew in August for the first time in 19 months, adding to evidence that the recession is ending.

The better-than-expected reading Tuesday by the Institute for Supply Management showed the highest number for its manufacturing index since June 2007. New customer orders jumped to a level not seen since late 2004.

And in another sign of an improving economy, a gauge of future U. S. home sales rose more than expected in July to the highest point in more than two years.

The reports raised hopes for a broad economic rebound. Still, as long as consumers remain hamstrung by weak pay and job losses, and wary of ramping up spending, the economy might not be able to sustain a recovery.

“Manufacturing will continue to expand,” but capital investment will decline because plants have too much excess capacity, said Daniel Meckstroth, chief economist for the Manufacturers Alliance, a trade group. “You’re going to see ups and downs.”

The ISM, a trade group of purchasing executives, said its manufacturing index rose to 52.9 in August, from 48.9 in July. It’s the first reading above 50, which indicates expansion, since January 2008. Analysts polled by Thomson Reuters had expected a reading of 50.5.

New orders jumped nearly 10 percentage points to 64.9 in August, their highest level since December 2004. With strong new orders for two straight months, production should grow at “reasonable rates” for the rest of the year, said Norbert Ore, chair of ISM’s manufacturing survey.

Meanwhile, the National Association of Realtors said its seasonally adjusted index of sales contracts signed in July for previously occupied homes rose 3.2 percent to 97.6. It was the sixth straight increase and 12 percent above the same month last year.

Economists surveyed by Thomson Reuters expected the index would edge up to 96.5.

Comments

There are no comments on this story.

Strictly Business Blog

Business Updates

Business Wire

The Feed / What’s Happening Now

Latest Updates
Most Commented
Most Viewed
Sports

WNY tour impresses new Bills

Dr. James Corasanti Trial

Rice visible 350 ft. prior to being hit, officer says

Music

Artpark unveils Tuesday concert lineup

Business

Franchisee shocked by two Perkins restaurants' closing

Downtown

Pegula offers landscaping for part of Canalside

Niagara Falls

Falls boxer nearly killed in severe beating

City of Buffalo

Man charged in '94 murder of neighbor

Courts

Man, 49, pleads guilty to killing his ex-boss

Schools

Results of Erie County school elections

Downtown

Fire truck overturns after collision with car on South Elmwood

Newsroom Tips

Have a news tip you think The Buffalo News should investigate?

Call The News tip line at 849-4475 or email us at investigations@buffnews.com.

All calls and emails will be kept confidential.

Buffalo Marketplace

Marketplace videos

Watch the latest offers, products and services from our advertisers.

Browse our print ads

It's the ultimate advantage for Buffalo consumers. Never miss another ad again!

Buffalo Savers: coupons

Buffalo coupons at your fingertips.
Just click and print. It's Easy!

close

Browse our print adsclose

Special Sections

Buffalo Saversclose

Local coupons

Featured coupon