Manufacturing and Services continue to expand - a positive sign for US economy!

The U.S. Service and Manufacturing business expansion (growth) or contraction (decline) is tracked by the Institute for Supply Management (ISM). The ISM Manufacturing index for August was healthy 61.3% (July 58.1%). The ISM Services index was 58.5% (July was 55.7%). 

Services make up of about ~80% of US GDP of about $20 Trillion.. othersare ...Manufacturing about 19% and Agriculture is about 1% of the GDP.  Therefore, Services expansion is a very good news for the US economy and job creation.  You may have recently noticed that there are more HELP WANTED signs outside shops, stores, hotels, restaurants, barbers, etc. where people are needed to provides services.

The ISM index number above 50 indicates that businesses are growing and a number below 50 indicates that businesses are contracting. So at 50 there is no growth or contraction. It is good news when businesses grow or expand, because businesses hire more people to make more Goods and provide more Services. On the other hand, when businesses contract, it means fewer jobs and more lay-offs, which is a bad sign for the economy. This is the 34th month is a row for manufacturing expansion. During the recent recession the ISM was recorded at dismal 33.3 in December 2008.