US manufacturing growth expanded for the third straight month in September but at a slower pace, according to a report today showing a moderate recovery in the industrial sector.
The Institute for Supply Management said its September manufacturing index declined to 53.7 from 54.7 in August.
The reading was the latest sign that a burst of growth over the summer may not last at its current heady pace, as a lack of job creation weighs on the recovery.
A reading above 50 signals expansion in the industrial sector, which makes up about one-sixth of the US economy. Among the index's components, the new orders index, a sign of future growth, picked up nicely to 60.4 from 59.6.
The employment reading fell again in September, to 45.7 from 45.9, as layoffs continued. The factory sector has been the hardest hit in the recession and slow recovery, suffering job losses of more than 2.5 million over the past three years.