NEW YORK — The U.S. manufacturing sector grew in August for the first time in 19 months, adding to evidence that the recession is ending.

The better-than-expected reading yesterday by the Institute for Supply Management showed the highest number for its manufacturing index since June 2007. New customer orders jumped to a level not seen since late 2004.

In another sign of an improving economy, a gauge of future U.S. home sales rose more than expected in July to the highest point in more than two years.

CASH FOR CLUNKERS BOOSTS MAINLY FORD

DETROIT — The Cash for Clunkers program boosted sales at Ford, Toyota and Honda in August as consumers snapped up their fuel-efficient offerings, but rivals Chrysler Group LLC and General Motors Co. withstood another month of falling sales.

The program, which ended on Aug. 24, drew hordes of buyers into quiet showrooms by offering up to $4,500 toward new, more fuel-efficient cars and trucks. The hefty rebates gave automakers and dealers a much-needed lift, spurring 690,114 new sales, many of them during August, at a taxpayer cost of $2.88 billion.

EMPLOYMENT SHOWS SHARP IMPROVEMENT

WASHINGTON — In a sharp improvement, the largest U.S. metropolitan areas were evenly split in July between those where unemployment rates rose from June and those where rates fell.

In June, by contrast, 90 percent of the 380 metro areas had seen their jobless rates rise from the previous month.

Much of the improvement was due to seasonal factors. They include the hiring of farm workers in many agricultural states and lower unemployment in college towns after a jump at the start of summer.

The metro employment figures, issued yesterday by the Labor Department, aren't adjusted for such seasonal changes, so they tend to be volatile from month to month.

NEWSPAPER CHAIN FREEDOM BANKRUPT

SAN FRANCISCO — The owner of the Orange County Register in California and dozens of other newspapers became the latest publisher Tuesday to seek bankruptcy protection, driven into financial despair by a staggering drop in advertising revenue.

The filing was part of a prepackaged plan approved by a majority of Freedom's lenders. The consensus on the proposed restructuring should minimize the haggling that can bog down bankruptcy proceedings.

In a Chapter 11 petition made yesterday in Wilmington, Del., Freedom Communications Inc. listed debts of more than $1 billion and assets of $500 million to $1 billion. Freedom's debt includes $770 million owed to a group of banks led by JPMorgan Chase & Co.

AMERICAN CUTTING 921 FLIGHT ATTENDANTS

DALLAS — American Airlines is cutting 921 flight attendant jobs as it deals with an ongoing downturn in traffic and lower revenue.

The airline said yesterday that the cuts will take effect Oct. 1 and reduce its flight-attendant ranks by about 6 percent.

American, the second-largest U.S. airline, said 228 employees will be furloughed — laid off but with rehiring rights — and the company will put 244 more on leave for two months. Another 449 will take voluntary options such as leave.