The ISM in July hit 55.5 vs. 54.2 expected, and 56.2 in June. While the July figure was lower than June, it still implies continued economic expansion for the 12th consecutive month.
Markets liked the result, as shown below.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “Manufacturing continued to grow during July, but at a slightly slower rate than in June. Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production. July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list.”
Looking at the ISM’s components, the Employment Index notably improved from June, indicating a faster rate of expansion for manufacturing employment. Meanwhile, New Orders growth fell by more than most other factors.
July’s ISM was lower than at any time in 2010, showing slowing growth.
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