The Institute for Supply Management [ISM] said its index of national factory activity fell to 55.5 in July from 56.2 in June. However, the industry performed better than expected and the decline was far less than the consensus of 54.2 (a reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.)
ISM: “Economic activity in the manufacturing sector expanded in July for the 12th consecutive month, and the overall economy grew for the 15th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “Manufacturing continued to grow during July, but at a slightly slower rate than in June. Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production. July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list.”
ISM’s New Orders Index registered 53.5 percent in July, which is a decrease of 5 percentage points when compared to the 58.5 percent reported in June. This is the 13th consecutive month of growth in the New Orders Index.
ISM’s Employment Index registered 58.6 percent in July, which is 0.8 percentage point higher than the 57.8 percent reported in June. This is the eighth consecutive month of growth in manufacturing employment.”
The inventories component in the report rose to 50.2 from 45.8 in June.