Economy
ISM: US Manufacturing Grew in July
Written by Brett Linton
August 2, 2022
US manufacturing activity expanded in July, but at a slightly slower pace compared to the month prior, according to the Institute for Supply Management (ISM). Indices for new orders, production, employment, supplier deliveries and prices all contracted in the month of July.
July’s Manufacturing PMI fell to 52.8%, down 0.2 percentage-points compared to June’s reading. This is the lowest PMI figure recorded since June 2020. Despite this decline, the July measure marks the 26th consecutive month of expansion. Any index reading above 50% indicates growth in the manufacturing sector.
“The US manufacturing sector continues expanding—though slightly less so in July—as new order rates continue to contract, supplier deliveries improve and prices soften to acceptable levels,” said Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee. “Sentiment remained optimistic regarding demand, with six positive growth comments for every cautious comment.”
- The Production Index registered 53.5% in July, down 1.4 percentage-points from June
- The Employment Index contracted for a third straight month at 49.9%, 2.6 percentage-points higher than the June reading.
- The Backlog of Orders Index for July registered 51.3%, 1.9 percentage-points lower than June.
- The New Orders Index fell 1.2 percentage-points to 48.0%.
- The Inventories Index registered 57.3%, 1.3 percentage-points higher than the June reading.
- The Supplier Deliveries Index fell 2.1 percentage-points to 55.2% for July.
Fiore commented, “Panelists are now expressing concern about a softening in the economy, as new order rates contracted for the second month amid developing anxiety about excess inventory in the supply chain.”
An interactive history of the ISM Manufacturing Report on Business PMI index is available here on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
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