ISM: Manufacturing sector expanded in July | ABA Banking Journal
The U. S. manufacturing sector expanded in July for the seventh consecutive month. The ISM Manufacturing PMI® registered 55. 6% in July, a 2. 3 percentage point (pp) increase from the June figure and the highest reading since May 2022 (55. 9%). The overall economy continued in expansion for the 21st month in a row. (A Manufacturing PMI® above 47. 5%, […]
The U. S. manufacturing sector expanded in July for the seventh consecutive month. The ISM Manufacturing PMI® registered 55. 6% in July, a 2. 3 percentage point (pp) increase from the June figure and the highest reading since May 2022 (55. 9%). The overall economy continued in expansion for the 21st month in a row. (A Manufacturing PMI®above 47. 5%, over a period of time, generally indicates an expansion of the overall economy. )The Employment Index registered 52. 8% in July, 3. 1 pp higher than June’s reading of 49. 7% and its highest level since August 2022 (54. 2%). The Prices Index registered 71. 1% in July, a decrease of 1. 9 pp under its June reading (73%) and indicating raw materials prices increased for the 22nd straight month. New Orders Index expanded in July with a reading of 56. 7%, an increase of 0. 7 pp compared to June’s seasonally adjusted figure of 56%. New Export Orders Index returned to expansion in July with a reading of 53%, an increase of 4. 5 pp above June’s reading of 48. 5%. Of the six largest manufacturing industries, three reported increases in new orders. A New Orders Index above 51. 9%, over time, is generally consistent with an increase in the Census Bureau’s series on manufacturing orders. Imports Index increased in July to 55. 7%, a 2. 8 pp increase compared to June’s reading of 52. 9% and the highest since June 2021 (61%). Nine industries reported higher imports in July. The Inventories Index registered 51. 2% in July, down 0. 2 pp compared to the reading of 51. 4% in June. “Two of the six big industries expanded inventories in February,” says Susan Spence, MBA, Chair of the Institute for Supply Management®(ISM®) Manufacturing Business Survey Committee. Read the ISMrelease.