Manufacturing Sector Expanded for Eleventh Consecutive Month

The ISM Manufacturing Index registered 56.3 points in July, down 1.5 percentage points from the previous month, according to the Institute for Supply Management. July’s reading indicates an eleventh consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, fifteen reported growth, while three reported contraction. Eight of the ten index components grew, while the inventories index was unchanged, and the customers’ inventories index was the only to contract.

The Employment Index decreased 2.0 points to 55.2 in July, indicating expansion for the tenth consecutive month. Eleven industries reported expansion, while three reported a decrease in employment.

The New Orders Index decreased 3.1 points to 60.4 in July, indicating growth for the eleventh consecutive month. Fourteen industries reported expansion, while one reported a decrease in employment.

Export orders decreased 2.0 points to 57.5, indicating growth for the seventeenth consecutive month. Eleven industries reported growth while only one of the eighteen reported a decrease in new export orders.

The inventories index registered 50.0 points, up 1.0 point from the previous month. Seven industries reported higher inventories, while eight reported a decrease.

Read the ISM release.