Reuters

(Reuters)

U.S. Manufacturing Contracted In August

Economic Indicators Dow Jones Newswires

A closely watched gauge of U.S. factories showed activity contracted in August, reflecting the mixed fortunes of American manufacturers amid a strong dollar, slow global growth and an uncertain outlook at home. 

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The Institute for Supply Management on Thursday said its index of manufacturing activity decreased to 49.4 in August from 52.6 in July. A reading above 50 indicates that factory activity is growing while a reading under 50 signals contraction. 

Economists surveyed by The Wall Street Journal had expected an August reading of 52.0. 

Write to Jeffrey Sparshott at jeffrey.sparshott@wsj.com