Manufacturing rises in August

NEW YORK — Manufacturing activity rose in August for the 15th consecutive month, but at a slower rate than in July, according to a monthly report released Wednesday by the Institute for Supply Management, a research group.

The ISM’s index for manufacturing activity stood at 59 in August, 3 points below the 62 recorded in July and just below the level analysts were expecting.

Nonetheless, the survey, together with a separate report showing that construction spending hit an all-time high in July, painted a positive picture for the economy overall and suggested that the economic expansion remained on solid footing.

Any reading in the ISM index above 50 means that manufacturing is expanding, while below 50 means activity is contracting. The index has been above 50 since June 2003.

The ISM report indicated healthy activity in the manufacturing sector, while showing some weak spots such as concerns among manufacturers over rising energy costs, higher prices for basic materials, especially steel, and slowing growth in sales.

“August was another good month for the manufacturing sector,” Norbert Ore, who directs the monthly survey for the ISM, said in a statement. He said that while the rate of growth slowed in the month, he described overall conditions for U.S. manufacturers as “still quite positive” as both new orders and production levels remain high.

Ore said many manufacturers are still rating their businesses as “strong,” while some are beginning to see a new orders taper off. He attributed a growth in inventories as part of a catch-up strategy to meet higher sales demand.

Treasury bonds, which are highly sensitive to reports on economic data, gave back early gains in trading on Wednesday, indicating that investors did not see the report as suggesting a significant slowdown in economic activity. Stocks were mixed on Wall Street.

“It’s still a healthy rate of expansion, and some of the details of the report support increases in payrolls and strength in production,” said Gary Thayer, chief economist at the A.G. Edwards & Sons Inc. brokerage in St. Louis.