ISM Manufacturing Index Unchanged at 50.5

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The Institute for Supply Management said Tuesday its manufacturing index remained unchanged at 50.5 in August, which marked the seventh straight month of growth, but was weaker than expected.

Any reading over 50 indicates the manufacturing sector is expanding, but economists were expecting a reading of 51.8, Bloomberg reported. This sector is one of the largest and most important customers of the trucking industry.

ISM said in its release that the new orders index declined to 49.7 from 50.4 in July, which the group said is a cause for concern through the rest of the year because it indicates a contraction.

Comments from purchasing executives reflect soft demand and competitive markets, ISM said. While some indicate business is improving, they remain cautious when forecasting the months ahead.

The production index dipped to 55.6 from 55.7, while the employment index rose slightly to 45.8 from 45 in July.

ISM said 8 of the 20 industries in the manufacturing sector grew during August including transportation and equipment, apparel and chemicals.

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