August ISM Tops Estimates (DJIA)
The August ISM Manufacturing Index came in at 56.3, topping the 53.0 consensus. A reading over 50 indicates expansion in the sector.
New orders slowed to 53.1 for its lowest reading since the recovery began in the second quarter of last year. Unfilled orders also slowed, down three points to 51.5 and its weakest reading since December.
The Institute for Supply Management surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories. A composite diffusion index of national manufacturing conditions is constructed, where readings above 50 percent indicate expansion.
The Dow (DJIA) has surged on this better-than-expected report and is now up 225 points, or 2.25%, to 10,240.
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