September 2, 2014

In August, the ISM manufacturing index climbed to 59.0% from the 57.1% recorded in July. The result exceeded market expectations of a fall to 56.9% and marked the highest reading since March 2011. Moreover, the index pushed further above the 50.0% threshold that indicates expansion in the manufacturing sector.



Gains in the new-orders and production categories bolstered the positive development, with each pushing to multi-year highs. In addition, inventories jumped back into expansion territory, while supplier deliveries and employment tallied negligible declines.

FocusEconomics Consensus Forecast panelists expect that industrial output will increase 3.9% this year, which is up 0.2 percentage points from last month’s forecast. For 2015, panelists see industrial production accelerating to a 4.2% expansion.