TEMPE, Ariz. — Transportation equipment was among the fast growing sectors of the U.S. economy in August 2010, according to the latest manufacturing report from the Institute for Supply Chain Management.

The Tempe, Ariz.-based association said 11 of 18 manufacturing industries experienced growth last month, and only two of them — primary metals; and apparel, leather and allied products — outpaced transportation equipment.

The ISM’s manufacturing survey revealed that economic activity in the American manufacturing sector expanded in August for the 13th straight month.

In terms of month-over-month improvement, the production and employment indexes experienced the greatest gains, while new orders continued to grow but at a slightly slower rate.

The PMI is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment.

ISM’s new orders index registered 53.1 percent in August, which is a decrease of 0.4 percentage point when compared to the 53.5 percent reported in July. This is the 14th consecutive month of growth in new orders.

The production index registered 59.9 percent in August, which is an increase of 2.9 percentage points from the July reading of 57 percent.

An index above 51 percent, over time, is generally consistent with an increase in the Federal Reserve Board’s Industrial Production figures. This is the 15th consecutive month the Production Index has registered above 50 percent.