Strong order growth in America’s manufacturing sector pushed the Institute for Supply Management’s (ISM) factory activity gauge above forecasts, though a measure of factory employment fell to a nine-month low as firms reported difficulties hiring workers. At the same time, while the ISM’s prices paid by manufacturers gauge saw a decline in August, suggesting a softening of inflationary pressures, a separate factory activity report by data firm IHS Markit (pdf) recorded the fastest pace of inflation in the history of its series. The ISM index of national factory activity rose to 59.9 last month, beating consensus estimates of 58.6 and representing the 15th month in a row of expansion in the U.S. manufacturing sector after its April 2020 contraction. A reading below 50 suggests activity contracted, while readings above that number reflect expansion. The ISM’s strong factory print came despite manufacturers reporting continued shortages of labor and raw materials. “Panelists reported …