US manufacturing activity,new orders grow in August

The reports raised hopes for a broad economic rebound. Still,as long as consumers remain hamstrung by weak pay and job losses,and wary of ramping up spending,the economy might not be able to sustain a recovery. Consumers did buy more cars last month,due mainly to the popular Cash for Clunkers programme ,which boosted Fords US sales 17.2 per cent over last year. Shortages of smaller vehicles weighed on rival Chrysler.

Other automakers are expected to release US sales figures later on Tuesday that are likely to mark the first year-over-year monthly sales gain for the industry since October 2007.