US Factory Activity Below Expectations: ISM


The Institute for Supply Management’s Manufacturing PMI came in at 52.6 in July 2016, down 0.6 p.p. from 53.2 in June. The figure came in below market expectations, but was pointing to the fifth consecutive month of growth in factory activity as 12 of our 18 industries reported an increase in new orders and 9 of our 18 industries reported a rise in production.

The New Orders Index registered 56.9 percent, a decrease of 0.1 percentage point from the June reading of 57 percent. 

The Production Index registered 55.4 percent, 0.7 percentage point higher than the June reading of 54.7 percent. 

The Employment Index registered 49.4 percent, a decrease of 1 percentage point from the June reading of 50.4 percent. 

Inventories of raw materials registered 49.5 percent, an increase of 1 percentage point from the June reading of 48.5 percent. 

The Prices Index registered 55 percent, a decrease of 5.5 percentage points from the June reading of 60.5 percent, indicating higher raw materials prices for the fifth consecutive month.

Manufacturing registered growth in July for the fifth consecutive month, as 12 of our 18 industries reported an increase in new orders in July (same as in June), and nine of our 18 industries reported an increase in production in July (down from 12 in June).

Of the 18 manufacturing industries, 11 are reporting growth in July in the following order: Textile Mills; Printing & Related Support Activities; Miscellaneous Manufacturing; Wood Products; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; and Computer & Electronic Products. The seven industries reporting contraction in July listed in order are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Machinery; Primary Metals; Transportation Equipment; and Paper Products.

US Factory Activity Below Expectations: ISM


ISM | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/1/2016 3:19:17 PM