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 ISM release.
