U.S. economy moving ahead, Obama says

TEMPE, Ariz., Sept. 1 (UPI) -- The expansion of the U.S. manufacturing sector is another indication that the economy is moving in the right direction, President Barack Obama said Tuesday.

The Institute of Supply Management said its headline index for U.S. manufacturing activity punched into positive territory in August. The index that has indicated a manufacturing contraction for 18 months, pulled above the breakeven mark of 50, reaching 52.9, the highest level since June 2007.

"This means greater production of transportation equipment like cars, and electronic equipment like computers and appliances," Obama said. "(It) is a sign that we're on the path to economic recovery."

Eleven of 18 business sectors reported growth in August as, "the year-and-a-half decline in manufacturing output has come to an end," Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee declared.

"(This) is another important sign that we're heading in the right direction, and that the steps we've taken to bring our economy back from the brink are working," Obama said.

Several component indexes have broken into positive territory in previous months, but the headline composite index, at 48.9 in July, continued to hold back.

The new orders index, 53.3 in July, made a sharp gain, reaching 64.9, an indication that growth has reason to continue.

The employment index showed a continued contraction, albeit one with improvement. The employment index hit 46.4, up from July's 45.6.