U.S. Manufacturing Falls In August, Exports Rise

September 2, 2008 4:02 p.m. EST

New York, NY (AHN) - The Institute for Supply Management reported Tuesday that the index measuring manufacturing activity fell to 49.9 in August, down from 50 in July.

ISM index readings below 50 generally mean contraction in the manufacturing space. The August reading was in-line with economists' estimates.

Wood products was the industry to contract most in August, according to ISM data. Paper products posted the strongest growth in activity for the period.

The index tracking exports continued its climb higher, up 3 percent to 57 in August. Exports have now grown 69 consecutive months. A few of the major industries that grew exports were Food, Beverage and Tobacco products, Paper Products and Chemical products.

The Prices index fell to a reading of 77, down 11.5 from the 88.5 reading in July. However, 60 percent of respondents to the ISM survey said they were paying higher prices. 34 percent said prices had remained the same in August.