Manufacturing expands more than expected

Manufacturing in the United States expanded in August at a faster pace than forecast, signaling the sector that led the recovery will keep it from faltering.

The Institute for Supply Management's factory index rose to 56.3 from 55.5 in July, the trade group said Wednesday.

Readings greater than 50 signal growth. Measures of production and employment increased.

"The manufacturing sector has maintained its momentum at least through August," said Zach Pandl, an economist at Nomura Securities International Inc. in New York. The report "makes clear the economy is not slipping into recession any time, but it's still reasonable to be concerned about where we're heading over the next three to six months."