ISM Index Shows Manufacturing Expanding at Slower Pace in August

he Institute for Supply Management said Wednesday its factory index fell to 59 in August from 62 in July. Analysts told Bloomberg News the decline was likely caused by rising costs for energy and raw materials.

The index has shown expansion, marked by readings higher than 50, since June 2003. The factory sector is one of trucking's largest and most important customers.

Economists expected a reading of 60 in the factory index, Bloomberg said. The index hit a two-decade high of 63.6 in January.

Also, the employment index dropped to 55.7 from 57.3, while the index of inventories rose to 51.7 from 49.9, indicating inventories are being rebuilt after falling a month earlier.

The group's prices paid index jumped to 81.5 in August, the highest in three months, from 77.

ISM said it surveys more than 400 companies in 20 industries, including transportation, for the monthly index.

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