Contraction continued for manufacturing economic activity during the month of July. The manufacturing PMI came in at 46.4%, according to the latest Manufacturing ISM Report On Business, marking the ninth consecutive month of contraction. It is, however, slightly higher than June’s 46%.
The food, beverage, and tobacco industry reported contraction along with 15 other industries. During the month of July, the industry saw a decline in new orders, a decrease in production, and a decrease in employment and reported higher inventories.
Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said, “The U.S. manufacturing sector shrank again, but the uptick in the PMI® indicates a marginally slower rate of contraction. The July composite index reading reflects companies continuing to manage outputs down as order softness continues.”
One industry respondent remained optimistic about the future, saying, “We are still in our slow season but will soon ramp up production to prepare for our busy season in late fall. Inventories aren’t changed much now but will be increasing soon. The reports on cooling inflation and consumer confidence are driving expectations of a very strong back half (of the year).”
