Category
                           Aug
                                    Jul
                                           Jun
                                                 May
                                                         Apr
  Total Index
                         47.9%
                                  43.6
                                          44.7
                                                 42.1
                                                         43.2
     Orders
                           53.1
                                  46.3
                                          48.6
                                                 45.5
                                                         45.9
     Production
                           52.2
                                  46.4
                                          46.2
                                                 42.7
                                                         42.9
     Employment
                           40.8
                                  37.2
                                          36.3
                                                 35.0
                                                         38.1
     Deliveries
                           46.5
                                  47.4
                                          48.0
                                                 45.7
                                                         47.4
     Inventories
                           37.7
                                  35.8
                                          40.8
                                                 38.7
                                                         39.6
     Export Orders
                           51.9
                                  48.2
                                          45.5
                                                 45.6
                                                         47.3
     Prices
                           33.9
                                  38.7
                                          42.3
                                                 45.2
                                                         48.9

Key Factors

     50%+ levels in new orders and production (combined 55% weight)
 leave the largest positive gain since 1996. 
     51.9% level in new export orders suggest some building strength from abroad. 
     Overall level still leaves a 13th month of sub-50%.  August suggests 
some significant softening in the sectoral recession. 
     Strong 6.8 point rise in new orders a real surprise given the continued
 weakness in factory orders. 
     Employment index rose above 40% after 4 months below, will lag
 improvement in overall index. 
     Prices paid fell to 33.9% from 65.7% at the start of the year.  
Lessens severity of the profit  squeeze.