Manufacturing index one tick down in month

WASHINGTON, Sept. 2 (UPI) -- U.S. manufacturing activity in August was little changed from July, falling just below the break-even point, the Institute for Supply Management said Tuesday

The Purchasing Managers Index for August was 49.9, one tick below July's break-even 50.

"This continues the 2008 trend toward negligible growth or contraction each month, but ultimately results in very little overall change in the sector," said Norbert Ore, chairman of the institute's Manufacturing Business Survey Committee.

"This month's report is showing the first signs of lower prices as the prices index fell significantly, though still at an inflationary level," Ore said. "Export orders picked up additional momentum, and that is important to manufacturers as domestic demand remains soft for most industries."

The index uses 50 as a break-even point with figures above indicating growth and figures below indicating contraction.

The employment index turned downward from 51.9 in July to 49.7. The production index dipped slightly from 52.9 to 52.1 and the prices index dropped significantly from 88.5 to 77, the report said. The export index rose from 54 in July to 57 in August. The imports index rose from 46.5 to 48.5.