Plus: Manufacturing Activity Sluggish in August, Unemployment Rate Inches Down and Companies Focus on Sustainability Valuation.

Manufacturing Activity Slow in August

Research firm Markit’s latest Purchasing Managers Index (PMI) found that manufacturing and services in the United States grew at a slightly faster pace in August, with the index rising to 51.5 from 51.4 in July. However, this still marked one of the lowest readings since the manufacturing recovery began in October 2009.

“The overall expansion of the U.S. manufacturing sector remained only modest in August, with the final PMI reading barely any higher than the near-three-year low reported in July,” Mark Wingham, an economist at Markit, noted. “If the PMI does not pick up substantially in September, third quarter manufacturing growth will likely be one of the weakest since the recovery began.”

Manufacturing output also inched up in August, climbing to 51.9 from 51.7 in July, but this marked the second-lowest production level in over a year. Rising domestic demand drove new orders up to 51.9 in August from 51 in July, with consumer goods manufacturers posting the largest gains. Meanwhile, new export orders rose to 48.8 from 48.6, indicating contraction for the third consecutive month.

Employment was another weak point in manufacturing last month, with Markit’s employment index falling to 52.4 from 52.7 in July, reflecting slowing growth and mounting reluctance for manufacturers to increase payrolls.

“U.S. manufacturers took a more cautious approach towards hiring more staff in August, with the rate of job creation the slowest since December 2010,” Wingham added. “This partly reflected the weak trends in output and new orders, despite having improved slightly from July.”

Unemployment Rate Falls to 3-Year Low

Although the U.S. labor market added only 96,000 non-farm jobs in August, the national unemployment rate fell to 8.1 percent, down from 8.3 percent in July and the lowest level since January 2009, according to the U.S. Department of Labor. This was far from a positive sign, however, as the decline in the national jobless rate was driven almost entirely by unemployed people who have stopped looking for work.

“The jobless rate shrank only because more than 300,000 workers dropped out of the labor force in August, following a trend that has accelerated with the nation’s economic problems. The Labor Department counts only those who are actively seeking a job as unemployed,” the Washington Post explains. “The report also said that 41,000 fewer jobs were created in July and June than first estimated. The revisions mean that employers have added just 139,000 jobs a month since the beginning of the year, below last year’s average of 153,000.”

The largest employment gains last month were in the food services and drinking industries, which added 28,000 jobs. Meanwhile, manufacturing employment dropped by 15,000 jobs in August, led by an 8,000 job decrease in motor vehicles and parts. Employment in other major industries, including construction, mining, logging and transportation, remained relatively unchanged.

“The drop in the labor force lowered what is known as the participation rate, which is the percent of the population who are working or looking for work. That rate at 63.5 percent is at the lowest levels since women first started entering the labor force in large numbers,” the Wall Street Journal reports. “Part of the decline is no doubt due to retiring Baby Boomers, but part is also discouraged workers giving up looking for a job.”

Company Execs Prioritize Sustainability

To prioritize sustainability initiatives within their companies, 46 percent of executives say they use sustainability valuation methods, a PricewaterhouseCoopers survey reveals. The global professional services firm polled 1,400 corporate executives during their webcast “Sustainability Valuation: Putting a Dollar Value on Your Initiatives.”

The findings also underscore the range of sustainability leadership efforts — while 36 percent of respondents said that their biggest challenge was “prioritizing” sustainability initiatives, 10 percent indicated that they are already considering the amount of capital to allot to sustainability programs.

“Corporate sustainability is driven by market forces and puts material business value at stake. That’s why companies need a valuation framework to effectively quantify and demonstrate its benefits,” according to Don Reed, director of PwC’s Sustainable Business Solutions.

Among the biggest sustainability challenges is “putting a dollar value” on such initiatives, with 17 percent citing direct cost savings as the most important factor in sustainability. Although 39 percent of the surveyed executives indicated that they have not adopted any valuation techniques, another 31 percent said they are interested in the cost effect these techniques could have on shareholder value.

Despite a focus on cost benefits, survey respondents cited environmental impact as the leading indirect benefit, followed by “talent, corporate know-how and retention.”

Tougher Enforcement to Boost Protection Equipment Market

Stricter enforcement of compliance for health and safety regulations is expected to stimulate growth for the protection equipment market over the next five years, new research shows.

According to a report from Frost & Sullivan, low to moderate levels of compliance with health and safety regulations have hindered expansion in the fall protection equipment industry in North America, but tougher enforcement by the government, oil and gas commissions, the Occupational Safety and Health Act (OSHA), American National Standards Institute (ANSI) and Canadian Standards Association (CSA) will open up new opportunities for the market.

In 2010, the North American fall protection equipment industry earned revenues totaling $453.7 million, and this is expected to grow to $670.5 million in 2017 at a compound annual growth rate of 5.7 percent.

“Government regulators form industry standards across the North American fall protection equipment market by emphasizing the need for personnel working in an unprotected area to wear fall arrest equipment,” a Frost & Sullivan research analyst noted. “As the legislation becomes more rigorous, the number of workers affected by the requirements will increase, giving a boost to equipment sales.”