The pace of growth in the U.S. manufacturing sector slowed in August to its weakest in over two years, according to an industry report, while construction spending in July climbed to its highest level in more than seven years.
The Institute for Supply Management said its index of national factory activity stateside fell to 51.1 from 52.7 the month before, marking the lowest reading since May 2013. The reading was shy of the expected 52.6, according to a Reuters poll of economists. A reading above 50 indicates expansion in the manufacturing sector.
The new orders sub-index fell to 51.7 from 56.5 to also mark the lowest level since May 2013. The prices paid index fell to 39.0 from 44.0 to mark the weakest level since March, disappointing expectations for 42.5. The employment index slipped to 51.2 from 52.7 to mark its lowest level since April, while the imports index hit its lowest level since January 2013 at 51.5.
