PMI, a monthly report from the Institute for Supply Management (ISM), tracks production levels, new orders, supplier deliveries, inventories and employment. A PMI of 50 or above indicates growth.
"The decline in manufacturing was slower in July when compared to June, as the more leading components of the PMI—the new orders and production indexes—rose significantly above 50%, thus setting an expectation for future growth in the sector,” says Norbert J. Ore, CPSM, CPM, chair of the ISM manufacturing business survey committee. “The employment and inventories indexes are still contracting, but the rate is slowing and they are moving in the right direction. It is also worth noting that the new export orders index shows growth following nine consecutive months of decline, suggesting that the global economy is recovering.
"Overall, it would be difficult to convince many manufacturers that we are on the brink of recovery, but the data suggests that we will see growth in the third quarter if the trends continue," he adds.