Manufacturing Expanded More Than Expected in August

U.S. factory activity expanded at a faster pace than expected in September as production and hiring increased, the latest sign of resilience in manufacturing despite faltering economic growth.

AP

The Institute for Supply Management said on Monday its index of national factory activity rose to 51.6 last month from 50.6 in August.

September marked the 26th straight month of expansion in a sector that has shouldered the broader economic recovery.

Economists polled by Reuters had expected the index to edge down to 50.5. A reading above 50 indicates expansion manufacturing.

A measure of factory employment rose to 53.8 last month from 51.8 in August, while production climbed to 51.2 from 48.6.

U.S. construction spending also unexpectedly rebounded in August from a drop in July as outlays on state and local government building projects rose sharply, a government report showed on Monday.

Construction spending rose 1.4 percent to an annual rate of $799.15 billion, the Commerce Department said.

Economists polled by Reuters had forecast a 0.3 percent drop after July construction spending fell by a revised 1.4 percent.

Private construction spending in August rose 0.4 percent, with residential spending up 0.7 percent and nonresidential spending up 0.2 percent.

Spending on public construction rose a strong 3.1 percent, registering its biggest monthly gain since February 2009.

State and local spending rose 3.5 percent, while federal construction spending fell 0.5 percent
(sourec)http://www.cnbc.com