ISM: Manufacturing Expands For Second Straight Month
Economic activity in the manufacturing sector expanded in July for the second consecutive month, and the overall economy grew for the 50th consecutive month, according to the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The Purchasing Managers Index (PMI) registered 55.4%, an increase of 4.5 percentage points from June’s reading of 50.9%. June’s PMI reading, the highest of the year, indicates expansion in the manufacturing sector for the second consecutive month.
The New Orders Index increased in July by 6.4 percentage points to 58.3%, and the Production Index increased by 11.6 percentage points to 65%. The Employment Index registered 54.4%, an increase of 5.7 percentage points compared to June’s reading of 48.7%. The Prices Index registered 49%, decreasing 3.5 percentage points from June, indicating that overall raw materials prices decreased from last month. Comments from the panel generally indicate stable demand and slowly improving business conditions.
Of the 18 manufacturing industries, 13 are reporting growth in July in the following order: Furniture & Related Products; Textile Mills; Printing & Related Support Activities; Paper Products; Wood Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Food, Beverage & Tobacco Products; Primary Metals; Transportation Equipment; Chemical Products; and Fabricated Metal Products.
The four industries reporting contraction in July are: Plastics & Rubber Products; Apparel, Leather & Allied Products; Machinery; and Miscellaneous Manufacturing.
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