U.S. manufacturing growth slows

TEMPE, Ariz., Sept. 4 (UPI) -- The pace of U.S. manufacturing growth slowed but still expanded in August, a trade group said Tuesday.

The private Institute for Supply Management of Tempe, Ariz., said its index of manufacturing activity fell to 52.9 from 53.8 in July and 56 in June.

The decline was slightly below most Wall Street economists' expectations the index would be 53.

Readings above 50 indicate business expansion and below 50 point to contraction.

"In comparing August to July, the rate of growth in manufacturing was slightly less but continues the expansion, although at the slowest pace in the past five months," survey director Norbert Ore said.

The institute's new-orders index came in at 55.3, down from July's 57.5, while August's production index was 56.1, up from 55.6 the previous month.

Factory hirings grew, with the employment index up to 51.3 from July's 50.2. The inventories index fell to 45.4 from July's 48.5.

The institute, composed of corporate purchasing managers, said inflationary pressures weakened, with the prices index hitting 63 from 65 in July and 68 in June.