The U.S. manufacturing sector grew for the seventh straight month in August. Although the results are in line with expectations, they failed to cheer traders.

“Putting the year in perspective, we now have seven consecutive months of modest growth. August’s PMI, at 50.5%, indicates that manufacturing improved when compared to July. New Orders softened, and are a cause for concern as we look at the balance of the year. At the current level of growth in the overall economy, many manufacturers find themselves anxious about second-half sales,” said Norbert Ore, chair of the Institute for Supply Management, in a release.

ISM’s Backlog of Orders Index indicates that order backlogs declined for the second consecutive month. ISM’s Supplier Deliveries Index reflects slower deliveries for the eighth consecutive month. Manufacturing employment continued to decline in August as the index remained below the breakeven point (an index of 50%) for the 23rd consecutive month. ISM’s Prices Index is above 50% as manufacturers experienced higher prices for the sixth consecutive month. New Export Orders grew in August for the eighth consecutive month. August’s Imports Index decelerated, while still registering growth for the ninth consecutive month.

Comments from purchasing and supply executives reflect soft demand and very competitive markets. While some indicate that business is improving, they lack confidence when forecasting the months ahead. Declines in consumer and business confidence are major themes.

RBC Financial says that the report failed to provide a clearer picture of the state of U.S. manufacturing activity. The overall number came in slightly on the soft side of expectations, but it is still consistent with increasing manufacturing output (albeit just barely) and an overall rate of U.S. real GDP growth in the range of 2% to 3%, notes RBC.