Manufacturing at Lowest Level of 2016, Construction Peters Out
Following five consecutive months of manufacturing expansion, the Institute for Supply Management said U.S. manufacturing contracted in August for the first time since February, as new orders and output dropped and factories cut jobs.
Also on the sobering side of the news, U.S. construction spending was flat in July.
The ISM manufacturing index hit 49.4 in August: A reading above 50 indicates expansion.
According to the report, manufacturers continue to struggle as businesses spend less on heavy machinery, computers and other large equipment. Auto sales are also cooling off.
What’s more, one measure of employment fell to 48.3, its second straight month of decline. The suggestion is that manufacturers are laying off workers.
As if that wasn’t enough, reports just out show that orders for new goods fell to the lowest level since December.
Category: Featured, Management
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