US can’t shake that shrinking feeling

The United States’ manufacturing industry has shrunk for the third consecutive month, an Institute for Supply Management survey has found.

The United States’ manufacturing industry has shrunk for the third consecutive month, an Institute for Supply Management survey has found.

The ISM index score of 49.6 (anything less than 50.0 represents a contraction) for August is down from 49.8 the month prior, meaning the sector is at its lowest point since July 2009.

“Manufacturing has been one of the stalwarts of an otherwise lackluster recovery but it’s starting to show some cracks,” Richard Moody of Regions Financial Group told Bloomberg.

The result would have been worse if not for growth in the automotive segment.

The US result follows Monday’s news that Australian manufacturing shrunk in August (the Australian Industry Group/PwC Performance of Manufacturing Index gave this country a score of 45.3) and negative results in Europe and China.