US Manufacturing Activity Contracted in August for a Sixth Month

US factory activity shrank in August for a sixth straight month, driven by a pullback in production that shows manufacturing remains bogged down by higher import duties.

The Institute for Supply Management’s manufacturing index came in at 48.7 last month, according to data released Tuesday. While a slight improvement from 48 in July, details of the report were mixed and the gauge remained below the level of 50 that separates expansion and contraction.

The group’s index of factory output sank 3.6 points to 47.8, moving back into contraction territory for the first time in three months. The group’s measure ...