Purchasing managers index (PMI) of manufacturing activity fell to 59 in August from 62 in July, signifying a slower growth in the sector, said The Institute of Supply Management.

Any reading above 50 shows growth in the sector. Thus, August marked the 15th straight month of growth for manufacturing.

"Overall the sector is still quite positive as both new orders and production remain at high levels," ISM executive said in a statement. "August's PMI at 59 percent represents the end of a period of nine consecutive months when the PMI was at 60 percent or higher."

The index's employment reading showed slower growth as well, falling to 55.7 from 57.3 in July. But its prices paid index jumped, a sign of growing inflationary pressures in the pipeline.

"It's a very strong reading for manufacturing overall. The most disturbing thing is the prices paid which is almost at crisis levels," an analyst said 

By: DocMemory
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