US continues recovery

US manufacturing expanded in August at the strongest pace in eight months and production rose the most since June 1999, as the US economy restores one of the elements that has been missing in the economic expansion.

The Institute for Supply Management’s factory index increased to 54.7 last month from 51.8 in July.

It was the highest since a reading of 55.2 in December and the second straight month the index has been greater than 50, signalling that manufacturing is growing after four months of contraction.