The boost from manufacturing has helped offset slower homebuilding, a slowdown in consumer purchases and weaker spending on utilities and other services. "The US economy is on a notably firmer growth track this summer, even if consumers are riding in the caboose," Sal Guatieri, an economist at BMO Capital Markets, wrote in a research note.
Bradley Holcomb, chair of the ISM's manufacturing survey committee, said a big jump in orders for aircraft reported by Boeing in July could be feeding through to its suppliers and boosting the ISM's index of new orders.
US manufacturing grew in August at the strongest pace in more than three years as factories cranked out more goods and new orders rose.
Orders for big-ticket factory goods such as autos and appliances also soared in July, though the gain reflected mainly a jump in demand for Boeing's commercial aircraft.
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