The Institute of Supply Management shared the spotlight with the jobs report this month, releasing its monthly index simultaneously with the national employment data. What ISM revealed was a notable drop in new orders coming into the industry despite a recent boom in exports, which actually helped to boost GDP growth in the second quarter. A weaker U.S. dollar, rising shipping costs and increasing wages globally are actually having a more positive effect on U.S. manufacturing, with exports benefiting from these dynamics. On the other side of the coin, those manufacturers involved in the housing and auto manufacturing business are most challenged right now. With high gas prices and the continuing sub-prime mortgage crisis, these sub-sectors are a drain on the industry, while areas like machinery and computer equipment continue to add to payrolls.

Key manufacturing sector job growth in thousands (YTD 08)

Source: BLS Data