ISM’s latest manufacturing report for July leaked on Monday morning.
The reading came in at 52.7, below the consensus forecast of 53.5 that was also the prior month’s print and a year-to-date high. A reading above 50 indicates expansion, and so despite the slowdown, US manufacturing is still in good shape.
The employment measure fell to 52.7 from 55.5. New orders increased slightly to 56.5 from 56.0. Production jumped to 56.0 from 54.0.
The report had been scheduled for release at 10:00 a.m. ET. After the numbers crossed the wires, the Institute for Supply Management published the report on their website.
A respondent in the survey for the report noted a “summer slow-down”, and others bemoaned lower oil prices with the expectation that they will fall further.
In a note to clients after the data, Capital Economics’ Adam Collins wrote, “Looking ahead, the manufacturing sector will probably continue to struggle as the dollar has appreciated further recently and overseas demand has remained muted. However, activity in other, larger parts of the economy has remained strong, so GDP growth should be between 2.5% and 3.0% annualised in the second half of the year.”