Manufacturing Sector Grew at a Slower Rate in July

The ISM Manufacturing Index registered 58.1 points in July, down 2.1 percentage points from the previous month, according to the Institute for Supply Management. July’s reading indicates the twenty-third consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, seventeen reported growth, while one reported contraction. Nine of the ten index components grew, while the supplier deliveries index slowed.

The Employment Index increased 0.5 point to 56.5 in July, indicating expansion for the twenty-second consecutive month. Thirteen industries reported expansion, while two reported a decrease in employment.

The New Orders Index decreased 3.3 points to 60.2 in July, indicating growth for the thirty-first consecutive month. Sixteen industries reported expansion, while none reported a decrease in employment.

Export orders decreased 1.0 point to 55.3, indicating growth for the twenty-ninth consecutive month. Seven industries reported growth while five reported a decrease in new export orders.

The Inventories Index registered 53.3 points, up 2.5 points from the previous month. Twelve industries reported higher inventories, while four reported a decrease.

Read the ISM release.