By Greg Robb
WASHINGTON (MarketWatch) - Activity for the nation's manufacturers showed contraction for the third straight month in August, the Institute for Supply Management reported Tuesday. The ISM index fell slightly to 49.6% in August from 49.8% in July. This was weaker than expected. The consensus forecast of estimates collected by MarketWatch was for the index to rise to 50.2%. Readings below 50 indicate contraction. This is the first three months of contraction since the summer of 2009, when the recession was ending. The new-orders index slipped to 47.1% in August from 48.0% in the prior month. The employment index slipped to 51.6% in August from 52.0% in July. Production fell 4.1points to 47.2% while prices surged 14.5 points to 54.0%.
