By Courtney Schlisserman
Aug. 3 (Bloomberg) — Manufacturing in the U.S. shrank less than forecast as stimulus-induced gains in demand worldwide helped resuscitate factories from the worst slump in three decades.
The Institute for Supply Management’s factory gauge rose to an 11-month high of 48.9 in July, according to the Tempe, Arizona, group. Readings below 50 signal contraction. A report from the Commerce Department showed June building projects climbed 0.3 percent, helped by higher public spending.
Factory gauges around the world showed advances for July, indicating government programs from Washington to Beijing aimed at reviving demand are starting to take hold. Stocks climbed, while Treasury securities and the dollar sank, as investor demand for riskier assets increased.