August index for manufacturing allays fears of double-dipManufacturing activity in the United States was higher-than-expected in August, indicating continued expansion.

The Institute for Supply Management's closely-watched manufacturing purchasing managers index (PMI) experienced a lower-than-expected decrease to 50.6 in August from July's reading of 50.9. Readings above 50 provide evidence of expansion, and index readings below 50 signal contraction. A Bloomberg News Survey of economists provided a consensus prediction that the index would fall to 48.5 in August.

Robert Dye, chief economist at Comerica Inc. and one of the three economists involved in the Bloomberg survey, told the media outlet that the report provides evidence we are not in recession, but that we need to consider other reports being issued, most importantly the one indicating that consumer confidence dropped to the lowest level in two years in August.

He added his prediction of "weak to moderate growth."

The U.S. economy is plagued with anemic growth, but data does not exist that we are in a recession or about to fall in one, NASDAQ reports. Dropping jobless claims and the better-than-expected PMI reading provide positive data among other reports which are less than encouraging.  
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