Economic activity in the manufacturing sector expanded in July, and the overall economy grew for the 123rd consecutive month, according to the Institute of Supply Management.
The purchasing managers’ index (PMI) registered 51.2%, a decrease of 0.5 percentage point from the June reading of 51.7%.
This is the lowest reading since August 2016, when the index registered 49.6%.
“The PMI continued a period of expansion softening, with four straight months of expansion decline,” said Timothy R. Fiore, chair of ISM. “Softening this month was primarily due to slower growth in demand and consumption, indicated by the New Orders, Production and Employment indexes. Four of the six big industries expanded, as was the case in June, but at lower levels,” says Fiore.
Other Indexes are as followed:
- The New Orders Index registered 50.8%, an increase of 0.8 percentage points from June.
-The Production Index registered 50.8%, a 3.3-percentage point decrease compared to June.
-The Employment Index registered 51.7%, a decrease of 2.8 percentage points from June.
-The Supplier Deliveries Index registered 53.3%, a 2.6-percentage point increase from June.
- The Inventories Index registered 49.5%, an increase of 0.4 percentage point from June.
- The Prices Index registered 45.1%, a 2.8-percentage point decrease from June.
“Respondents expressed less concern about U.S.-China trade turbulence, but trade remains a significant issue. More respondents noted supply chain adjustments as a result of moving manufacturing from China. Overall, sentiment this month is evenly mixed,” says Fiore.