The Institute for Supply Management (ISM) reported this morning that the nation's manufacturers decreased production during the month of August. The ISM index moved lower to 49.9% in August from a reading of 50% in July. Economists forecast the index to hold at 50%. Meanwhile, the new orders index rose to 48.3% in August from 45.0% in July, while the price-paid index retreated in August. Readings below 50% indicate contraction, while readings above 50% are a sign of expansion.

Exports seem to be the index's strength. Ryan Sweet, a senior economist at Moody's Economy.com in West Chester, Pennsylvania, said, "Exports continue to save the day as strong demand from abroad is putting a floor under manufacturing. Final demand will remain weak as the fiscal stimulus boost fades and tight credit conditions hurt investment."