US manufacturing grew in August at its strongest pace in eighth months, offering further evidence that growth is picking up in the world's largest economy, according to a key indicator. The Institute for Supply Management's (ISM) factory index rose to 54.7 last month from 51.8 in July - the highest since December, and the second month the index has been greater than 50, signalling US manufacturing is growing after four months of contraction.
The institute's production index rose to 61.6, the highest in four years. With inventories lean, companies are placing more orders and factories are stepping up output to meet rising demand. The improvement is bolstering expectations a global expansion is gathering momentum, led by the US. Commenting on the figures, Norbert Ore, chairman of the ISM business survey committee, said, "The surge in August production is very positive. The overall picture is encouraging as many manufacturers traditionally experience an upturn in production during the last four months of the year."//www.fxcentre.com