New orders for U.S.-made goods accelerated 1.2% in August, pointing to sustained strength in manufacturing even as economic growth appeared to have slowed in the third quarter because of shortages of raw materials and labour.
Manufacturing, which accounts for 12% of the economy, is being driven by still-strong demand for goods. Businesses are rebuilding inventories, which were depleted in the first half, underpinning activity at factories. An Institute for Supply Management survey last week noted that “companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing demand.”
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