ISM index is above 50, at 52.9% for August, this is good news

The Industrial Supply Management report is out and it's pretty good news! Manufacturing is finally expanding. Any reading above 50 indicates growth. The bad news is they are still laying people off, employment is still contracting. New Orders are way up, to 64.9 from 55.3 last month.

Manufacturing on Life Support - ISM Factory Index at 38.9% - Lowest since 1982

Our ignored economic engine, manufacturing, is on life support.

Factory Index Declines to 26-Year Low:

The Institute for Supply Management's factory index fell to 38.9 from 43.5 in September; 50 is the dividing line between expansion and contraction. The Commerce Department said separately that construction spending fell for the eighth time in 10 months in September

From the ISM press release: