Economic activity in the manufacturing sector expanded in July for the fifth consecutive month, while the overall economy grew for the 86th consecutive month, according to supply executives contributing to the latest Manufacturing Institute for Supply Management Report On Business. Additional data from the report included:
- The July Purchasing Manager’s Index mark of 52.6 percent is a decrease of 0.6 percentage points from June.
- The New Orders Index registered 56.9 percent, a decrease of 0.1 percentage points from June, but the seventh straight month of growth.
- The Production Index registered 55.4 percent, 0.7 percentage points higher than the June reading, and also the seventh straight month of growth.
- The Employment Index registered 49.4 percent, a decrease of one percentage point from June.
- Inventories of raw materials registered 49.5 percent, an increase of one percentage point from June, indicating raw materials inventories contracted in July for the 13th consecutive month. An Inventories Index greater than 42.8 percent is generally consistent with expansion.
- The Prices Index registered 55 percent, a decrease of 5.5 percentage points from June, indicating higher raw material prices for the fifth consecutive month. A reading above 52.4 percent is generally consistent with an increase in prices.
- The Backlog of Orders Index registered 48 percent in July, a decrease of 4.5 percentage points from June, indicating contraction in order backlogs.
- The 11 industries reporting growth in July included Textile Mills, Printing, Miscellaneous Manufacturing, Wood Products, Furniture & Related Products, Chemicals, Food, Beverage & Tobacco, Fabricated Metal Products, Non-metallic Mineral Products, Petroleum & Coal Products and Computer & Electronic Products.
- Commodities that registered an increase in price included copper, diesel, gold, natural gas, polyethylene resins and stainless steel
- Commodities down in price included corn.
