Manufacturing index contracts in July
Economic activity in the manufacturing sector contracted in July for the second time since July 2009, but the overall economy grew for the 38th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business released Wednesday, Aug. 1.
The PMI registered 49.8 percent, an increase of 0.1 percentage point from June’s reading of 49.7 percent, indicating contraction in the manufacturing sector for the second consecutive month following 34 consecutive months of expansion.
The New Orders Index registered 48 percent, an increase of 0.2 percentage point from June and indicating contraction in new orders for the second consecutive month, but at a slightly slower rate. A New Orders Index above 52.3 percent, over time, generally is consistent with an increase in the Census Bureau’s series on manufacturing orders.
ISM’s Production Index registered 51.3 percent in July, an increase of 0.3 percentage point from June and indicating growth for the 38th consecutive month. An index above 51.2 percent, over time, generally is consistent with an increase in the Federal Reserve Board’s Industrial Production figures.
“A growing number of comments from the panel this month reflect a slowdown in their businesses and general concern over increasing economic uncertainty,” said Bradley Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.