U.S. manufacturing activity increased more than expected in August as new orders surged to their highest level in over 16-1/2 years, but employment at factories continued to lag amid safety restrictions intended to slow the spread of COVID-19. The upbeat report from the Institute for Supply Management (ISM) strengthened expectations for a sharp rebound in economic activity this quarter, though the outlook is uncertain as money from the government dries up. Manufacturing is not out of the woods yet as the coronavirus crisis lingers. Factory activity is being driven by demand for goods used at home like electronics while capital investment remains weak. The ISM said manufacturers described sentiment as “generally optimistic, though to a lesser degree compared to July.” The economy, which slipped into recession in February, suffered its deepest contraction in at least 73 years in the second quarter. “The economy isn’t back to […]