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ISM Factory Index Off In Sept. As Jobs Fell, Orders, Backlog Rose; Jobless Recovery Continues; Economists agree hiring remains the missing link; most still see jobs ahead.(A)
Byline: CHRISTINA WISE
The nation's manufacturing sector continued to expand in September, though at a slightly slower clip than the month before, a widely watched report showed Wednesday.
The Institute of Supply Management's index stood at 53.7 in September, slightly lower than August's 54.7. Readings above 50 show the sector is growing.
Some of the strongest gains showed up in the new orders subindex, which rose to 60.4. That's its fifth straight month of acceleration and the highest reading this year. Order backlogs also swelled, climbing to 52.5 from 51.5 for their third gain in a row and best showing since June '02.
"The strength in new orders during September is a very positive sign as we move into the fourth quarter," wrote Norbert Ore, ISM's chairman. "The overall picture is better; some manufacturers are very happy with the improvement, while others are waiting for their sector to pick up."
The pace of production growth slowed slightly, easing to a still-strong 57.3 from 61.6.
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