You can now read 10 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

The Boston Globe

Business

Factories note a jump in orders

Bottles of ale at a Brooklyn brewery. A recent survey on factory output found broad-based growth.

Richard Drew/Associated Press/File

Bottles of ale at a Brooklyn brewery. A recent survey on factory output found broad-based growth.

WASHINGTON — US factories expanded last month at the fastest pace since June 2011 on a jump in orders. The report signals that manufacturing output could strengthen in coming months.

The Institute for Supply Management, a trade group of purchasing managers, said Tuesday that its manufacturing index rose to 55.7 in August from 55.4 in July. That topped the index’s 12-month average of 52. A reading above 50 indicates growth.

Continue reading below

A gauge of new orders rose nearly five points to 63.2, the highest level in more than two years. At the same time, production increased more slowly than in July, and factories added jobs at a weaker rate. Despite the drop, production reached its highest level in 2½ years.

The overall improvement contrasts with other recent reports that had pointed to a slowdown in manufacturing. The ISM’s survey found broad-based growth, with 15 out of 18 industries reporting expansion and only one reporting contraction.

The Federal Reserve will closely examine Tuesday’s report, which comes two weeks before Fed policy makers will decide whether to slow their bond-buying program.

The jobs report for August, to be released Friday, is the most important remaining report the Fed will consider.

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week