The Institute for Supply Management reported that the Manufacturing PMI rose to 46.4% in July, 0.4 percentage points higher than in June.
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This is the eighth consecutive month of contraction for the manufacturing sector.
Here’s the breakdown of the July PMI:
- New Orders Index: 47.3%, a 1.7 percentage point increase month-over-month
- Production Index: 48.3%, a 1.6 percentage point increase month-over-month
- Prices Index: 42.6%, a 0.8 percentage point increase month-over-month
- Backlog of Orders Index: 42.8%, a 4.1 percentage point increase month-over-month
- Employment Index: 44.4%, a 3.7 percentage point decrease month-over-month
- Supplier Deliveries Index: 46.1%, a 0.4 percentage point increase month-over-month
- Inventories Index: 46.1%, a 2.1 percentage point increase month-over-month
- New Export Orders Index: 46.2%, a 1.1 percentage point decrease month-over-month
- Imports Index: 49.6%, a 0.3 percentage point increase month-over-month
“The U.S. manufacturing sector shrank again, but the uptick in the PMI® indicates a marginally slower rate of contraction,” said Timothy R. Fiore, ISM Chairman. “The July composite index reading reflects companies continuing to manage outputs down as order softness continues.”
The two manufacturing industries that reported growth in July were:
- Petroleum & Coal Products
- Furniture & Related Products
Apparel, Leather & Allied Products; Plastics & Rubber Products; Paper Products; Textile Mills; Wood Products; Computer & Electronic Products; Chemical Products; Primary Metals; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Miscellaneous Manufacturing; Fabricated Metal Products; Transportation Equipment; Nonmetallic Mineral Products; and Machinery all reported contraction in July.
