U.S. Manufacturing Activity Expands in July

Economic activity in the manufacturing sector expanded in July for the 31st consecutive month, and the overall economy grew for the 74th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

“The July PMI® registered 52.7 percent, a decrease of 0.8 percentage point below the June reading of 53.5 percent,” Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee said in a release “Comments from the panel reflect a combination of optimism mixed with uncertainties about international markets and the impacts of the continuing decline in oil prices,”

The New Orders Index registered 56.5 percent, an increase of 0.5 percentage point from the reading of 56 percent in June and is up for four consecutive months. The Production Index registered 56 percent, 2 percentage points above the June reading of 54 percent.

However, all of the news was not positive as the employment index decreased to 52.7 in July from 55.5 in June. On Friday, the Labor Department will release the July employment report.

Of the 18 manufacturing industries, 11 are reporting growth in July in the following order: Textile Mills; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Furniture & Related Products; Fabricated Metal Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Transportation Equipment; and Miscellaneous Manufacturing. The five industries reporting contraction in July are: Wood Products; Primary Metals; Plastics & Rubber Products; Chemical Products; and Machinery.

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