04 September 2009
Growth in the US manufacturing sector shows the country is "on the path to economic recovery", President Barack Obama has said.
In August's Institute for Supply Management report on manufacturing - where a figure above 50 represents growth - total activity registered 52.9 per cent. This is a rise of 4 percentage points compared with July. New orders were up 9.6 points to 64.9 per cent, while production rates rose to 61.9 per cent.
Obama said: "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."
But the growth was not matched elsewhere. According to the CIPS/Markit UK Manufacturing Purchasing Managers' Index, total activity in the sector registered 49.7 in August, a drop from the revised figure of 50.2 registered in July. In the Eurozone, manufacturing activity contracted at its slowest rate in 14 months to reach 48.2 in August.