ISM manufacturing index hits 59.8 in September; construction spending up 0.1% in August … CNBC
ISM manufacturing index hits 59.8 in September; construction spending up 0.1% in August
By Fred Imbert
Manufacturing activity expanded at a slower-than-expected pace in September, according to data from the Institute of Supply Management.
The ISM manufacturing index reached 59.8 last month, down from 61.3 in August. Economists polled by Reuters expected the ISM manufacturing index to hit 60.4 in September. Any reading above 50 reflects an expansion
of manufacturing activity.
The slowdown came as new orders fell to 61.8 from 65.1 in August.
U.S. construction spending barely rose in August as a surge in outlays on public projects to a more than nine-year high was offset by a drop in investment in private construction.
The Commerce Department said on Monday that construction spending edged up 0.1 percent. Data for July was revised up to show construction outlays rising 0.2 percent instead of the previously reported 0.1 percent
Economists polled by Reuters had forecast construction spending increasing 0.4 percent in August. Construction spending rose 6.5 percent on a year-on-year basis.
Spending on public construction projects jumped 2.0 percent in August to the highest level since July 2009. That followed a 1.7 percent increase in July. Spending on federal government construction projects soared
5.9 percent to a 10-month high after increasing 2.3 percent in July.
State and local government construction outlays accelerated 1.7 percent in August to the highest level since March 2009. That followed a 1.6 percent rise in July.
But spending on private construction projects fell 0.5 percent in August after decreasing 0.2 percent in July. Private construction outlays have now declined for three straight months. Investment in private residential
projects fell 0.7 percent in August after gaining 0.2 percent in July.
Homebuilding has been constrained by rising material costs as well as persistent land and labor shortages. Residential investment contracted in the first half of the year and is expected to have declined further
in the third quarter.
Spending on private nonresidential structures, which includes manufacturing and power plants, slipped 0.2 percent in August after declining 0.8 percent in July.