U.S. Manufacturing Growth Continues for Eighth Straight Month

U.S. manufacturing activity remained in expansion territory for the eighth consecutive month in August, despite ongoing trade uncertainty and elevated input costs.

The Institute of Supply Management's (ISM) Manufacturing PMI was 54.6% in August, down from July's 55.6%, but still indicating growth in the sector.

Three key demand indicators - New Orders, Backlog of Orders, and New Export Orders - remained in expansion territory, while the Customers' Inventories Index stayed below 50%, suggesting a positive outlook for future production.

Caterpillar, Kubota, Nordson, Zebra Technologies, and Watts Water Technologies are among the industrial stocks expected to benefit from the sector's growth, with Caterpillar boasting a record backlog of $72 billion and Kubota experiencing strength in construction equipment sales.