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| Version 2 | Version 3 |
|---|---|
| US manufacturing remains strong | US manufacturing remains strong |
| (40 minutes later) | |
| The US manufacturing sector has remained strong, data shows, offering some reassurance that woes in the financial markets has yet to spread. | The US manufacturing sector has remained strong, data shows, offering some reassurance that woes in the financial markets has yet to spread. |
| The Institute for Supply Management (ISM) manufacturing index fell to 52.9 in August from July's 53.9. Analysts had expected a reading of 53.0. | The Institute for Supply Management (ISM) manufacturing index fell to 52.9 in August from July's 53.9. Analysts had expected a reading of 53.0. |
| Any figure over 50 shows that the manufacturing sector is expanding. | Any figure over 50 shows that the manufacturing sector is expanding. |
| The limited losses helped US markets make gains, with the Dow Jones closing up 0.7% and the Nasdaq adding 1.3%. | The limited losses helped US markets make gains, with the Dow Jones closing up 0.7% and the Nasdaq adding 1.3%. |
| Construction fall | Construction fall |
| "The modest decline in the ISM manufacturing index suggests that the turmoil in financial markets is so far having only a limited impact on the real economy," said analysts from Capital Economics. | "The modest decline in the ISM manufacturing index suggests that the turmoil in financial markets is so far having only a limited impact on the real economy," said analysts from Capital Economics. |
| "At its latest level, the index is consistent with GDP growth of roughly 2.75%. While that's a bit below the economy's potential, it suggests that recent talk of an imminent recession are, at best, premature." | "At its latest level, the index is consistent with GDP growth of roughly 2.75%. While that's a bit below the economy's potential, it suggests that recent talk of an imminent recession are, at best, premature." |
| The market performance was despite Commerce Department data showing that construction activity had plunged in July, with spending on homes falling for a 17th straight month. | The market performance was despite Commerce Department data showing that construction activity had plunged in July, with spending on homes falling for a 17th straight month. |
| The two pieces of data made it more likely that the Federal Reserve would cut interest rates at its next meeting on 18 September, analysts said. | The two pieces of data made it more likely that the Federal Reserve would cut interest rates at its next meeting on 18 September, analysts said. |
| Stock markets have suffered heavy falls amid concern over how firms such as banks may be exposed to the US sub-prime mortgage market. | Stock markets have suffered heavy falls amid concern over how firms such as banks may be exposed to the US sub-prime mortgage market. |
| Sub-prime mortgages are offered to people with poor credit histories, but default rates on these loans have been rising in the US as a result of rising mortgage rates. | Sub-prime mortgages are offered to people with poor credit histories, but default rates on these loans have been rising in the US as a result of rising mortgage rates. |
| The fallout from the slump has continued with more mortgage and property companies reporting trouble. | |
| Lender NovaStar Financial said on Tuesday that it was cutting jobs, with its auditor expressing doubts that the company would survive. |