Aug. 5, 2015
ISM: Manufacturing Expands Again in July
Economic activity in the manufacturing sector expanded in July for the 31st consecutive month, reports the Institute for Supply Management, Tempe, Ariz., in its latest Manufacturing ISM Report on Business. The PMI for July was 52.7 percent, a decrease of 0.8 percentage point from July’s reading, but still well above the 50 percent level that indicates growth.
Of the 18 manufacturing industries polled by ISM, 11 reported growth in July, including fabricated metal products, appliances and components, transportation equipment and miscellaneous manufacturing. Primary metals and machinery were among the five industries reporting contraction in July.
Among other indices, ISM’s New Orders Index registered 56.5 percent, an increase of 0.5 percentage point from June; the Production Index rose 2 percentage points to 56.0 percent; and the Employment Index hit 52.7, 2.8 percentage points below June, but still reflecting growth.
The PMI’s seven-month average of 52.6 percent corresponds to a 3 percent increase in GDP, calculates ISM.