The Manufacturer Index and Distributor Index both rebounded in August after falling below 50 in July, according to the September Economic Indicator Report from the Industrial Supply Association. The ISA Distributor Index increased to 66.3 in August compared to 44.9 in July, while the Manufacturer Index increased to 60.1 from 48.6.

"It’s gratifying to see that the downturn experienced in mid-summer was short-lived," said Bryon Shafer, general manager of ASG Industrial and chair of ISA’s Strategic Information Committee. "Comments from participants suggest improved optimism about the economy as we enter the fall season."

For each index, a reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.