Manufacturing Sector Expands Again in July
Economic activity in the manufacturing sector expanded in July for the fifth consecutive month, reports the Institute for Supply Management, Tempe, Ariz. The PMI for July was 52.6 percent, a decrease of 0.6 percentage point from June, but still well above the 50 percent mark that indicates growth.
Of the 18 industries surveyed, purchasing managers from 11 reported growth in July, including fabricated metal products, furniture and related products, and miscellaneous manufacturing. Primary metals, electrical equipment, transportation equipment and appliances and components were among the seven industries reporting contraction during the month.
Among other indices, ISM’s New Orders Index decreased 0.1 percentage point to 56.9 percent, the Production Index ticked up 0.7 percentage point to 55.4 percent, while the Employment Index dipped 1 percentage point to 49.4 percent.
The PMI for July, if annualized, would correspond to a 3 percent increase in real GDP annually, says ISM. The average PMI from January through July of 51.1 percent would correspond to a 2.5 percent increase in GDP.