Manufacturing Sector, Economy Show Growth 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, reports the Institute of Supply Management in its latest Manufacturing ISM Report On Business.
Manufacturing expanded in July as the PMI registered 52.7 percent, a decrease of 0.8 percentage point below the June reading of 53.5 percent, indicating growth in manufacturing for the 31st consecutive month. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. A PMI in excess of 43.1 percent, over a period of time, generally indicates an expansion of the overall economy.
The New Orders Index registered 56.5 percent, an increase of 0.5 percentage point from the reading of 56 percent in June. The Production Index registered 56 percent, two percentage points above the June reading of 54 percent.
The Employment Index registered 52.7 percent, 2.8 percentage points below the June reading of 55.5 percent, reflecting growing employment levels from June but at a slower rate. Inventories of raw materials registered 49.5 percent, a decrease of 3.5 percentage points from the June reading of 53 percent.
The Prices Index registered 44 percent, down 5.5 percentage points from the June reading of 49.5 percent, indicating lower raw materials prices for the ninth consecutive month. 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."
Of the 18 manufacturing industries, 11 reported growth in July in the following order: Textile Mills; Paper Products; Apparel, Leather & Allied Products; Printing and Related Support Activities; Furniture and Related Products; Fabricated Metal Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances and Components; Food, Beverage and Tobacco Products; Transportation Equipment and Miscellaneous Manufacturing.
The five industries reporting contractions in July are Wood Products; Primary Metals; Plastics and Rubber Products; Chemical Products and Machinery. Click here for more information on the July 2015 Manufacturing ISM Report On Business.