US ISM Manufacturing PMI for July 55.6 versus 54.0 estimate
- Prior month 53.3
- Prices paid 71.1 versus 71.0 estimate.. Prior month 73.0
- Employment 52.8 versus 49.7 last month.
- New orders 56.7 versus 56.0 last month
Here are the other components for July vs June:
- Production: 58.5 vs 52.2
- Supplier Deliveries: 58.9 vs 57.4
- Inventories: 51.2 vs 51.4
- Customers’ Inventories: 40.7 vs 42.3
- Backlog of Orders: 55.0 vs 50.5
- New Export Orders: 53.0 vs 48.5
- Imports: 55.7 vs 52.9
Comments on the report from Susan Spence
- “In July, U.S. manufacturing activity remained in expansion territory, growing at its fastest rate in more than four years. Of the five subindexes that make up the PMI®, four grew faster compared to the previous month; the exception was the Inventories Index, which was down just 0.2 percentage point.
- “In July, 38 percent of the comments were positive and 62 percent negative, with a 1-to-1.6 ratio of positive to negative sentiment. Pricing volatility was mentioned in 57 percent of negative comments, the Iran war 43 percent, increasing lead times 22 percent and tariffs 18 percent.
- “In July, three of four demand indicators (the New Orders, Backlog of Orders and New Export Orders indexes) were in expansion, and the Customers’ Inventories Index remained in 'too low’ territory, contracting at a faster rate. A 'too low’ status for the Customers’ Inventories Index is usually considered positive for future production.
- “Regarding output, the Production Index expanded for the ninth month in a row, and the Employment Index increased 3.1 percentage points to enter growth territory for the first time in 33 months. Sixty percent of panelists reported their companies are hiring, while 40 percent indicated that managing head counts remains the norm.
This article was written by Greg Michalowski at investinglive.com.