America's manufacturers and builders are on a tear

Manufacturing expanded in August at the fastest pace in more than six years

America’s manufacturers and builders are on a tear
Vince Golle | Bloomberg
Last Updated : Sep 03 2017 | 12:51 AM IST
America’s manufacturers are showing signs of fabricating some genuine momentum. 

Toss in improvement among US builders and miners and the US is undergoing the blue-collar revival that President Donald Trump has been pushing. Gary Cohn, the top economic adviser at the White House, told CNBC that the country is seeing jobs being created in the sectors that need them.

Manufacturing expanded in August at the fastest pace in more than six years, the Institute for Supply Management said Friday. The increase from the previous month was driven mainly by the group’s gauge of factory employment, which reached the highest level since June 2011.

The ISM data were consistent with numbers from the Labour Department’s jobs report; a similar manufacturing gauge in Europe is also showing one of the fastest expansions since 2011. The US government said the 36,000 advance in factory payrolls last month matched the biggest increase since 2012.

What’s more, the breadth of job gains at factories -- from appliance makers to auto makers to fabricated-metal producers — is the strongest in almost two decades, according to the Labour Department. The manufacturing employment diffusion index surged to 73.1, the highest since November 1997.

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