New orders for US-made goods rose 1.2% in August, pointing to continued strength in manufacturing, even as economic growth slowed in the third quarter due to raw material and labor shortages.
Manufacturing, which accounts for 12% of the economy, is driven by a still strong demand for the goods. Businesses are rebuilding inventory, which was depleted in the first half, reducing activity at factories. A survey by the Institute for Supply Management said last week that “companies and suppliers continue to face an unprecedented number of hurdles to meet growing demand.”
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