US Manufacturing Activity Was Strongest In Nearly Two Years This August
However, employment in the United States continues to lag amidst pandemic.
In the month of August, the manufacturing activity in the United States accelerated to a nearly two-year high thanks to a growth in the number of new orders. Despite this, however, the employment numbers of the country continued to lag, suggesting all over again that the labour market recovery was losing momentum. These figures come from the Institute for Supply Management (ISM), which said on Tuesday that its index of national factory activity increased to 56.0 in August from 54.2 in July. It also noted that this was the highest level since November 2018 and marked three straight months of growth.
The manufacturing sector accounts for 11% of the US economy. Although factory employment continued to improve last month, it remained in contraction territory. The ISM’s manufacturing employment measure rose to a reading of 46.4 from 44.3 in July. It was moreover, already in a decline before the COVID-19 crisis owing to the Trump administration’s trade war with China.
Get the latest world news only on ZEE5.