US Factory Growth at 3-Month Low: ISM


The Institute for Supply Management’s Manufacturing PMI in the US fell to 58.1 in July of 2018 from 60.2 in the previous month, below market expectations of 59.5. The reading pointed to the weakest expansion in the manufacturing sector in three months amid a slowdown in new orders, export orders and production. Demand remains robust but manufacturers keep showing concerns about how tariff-related activity, including reciprocal tariffs, will continue to affect their business.

Slower increases were seen in new orders (60.2 from 63.5), production (58.5 from 62.3), supllier deliveries (62.1 from 68.2), backlogs of orders (54.7 from 60.1), new export orders (55.3 from 56.3) and imports (54.7 from 59). On the other hand, price pressures eased (73.2 from 76.8) and faster growth was recorded in employment (56.5 from 56) and inventories (53.3 from 50.8).

Of the 18 manufacturing industries, 17 reported growth in July, in the following order: Textile Mills; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Computer & Electronic Products; Petroleum & Coal Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Machinery; Plastics & Rubber Products; Miscellaneous Manufacturing; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Chemical Products; Wood Products; and Transportation Equipment. The only industry reporting a decrease in July is Primary Metals.

 US Factory Growth at 3-Month Low: ISM


ISM | Joana Taborda | joana.taborda@tradingeconomics.com
8/1/2018 2:20:01 PM