The PMI came in at 55.5, a smidge better than expectations of 54.5, yet worse than June's 56.2, and the lowest since December 2009, yet expectations set by a roundtable of Ph.D.'s are all that matters. Among the various indices, New Orders came in at 53.5 versus 58.5, the lowest since Junr 2009, while both Employment and Prices Paid came in better than before at 58.6 and 57.5 respectively. Deterioration was also spotted in Production, Backlog of Orders, and Imports. Yet this seemingly "better than expected" report was overshadowed by the sampling of negative responses:"Business in July was strong, the best month since October 2008." [don't tell this to Arcelor-Mittal] (Fabricated Metal Products), "Slow economy has killed sales for new equipment orders." (Machinery),"Quoting activity and sales are slow, and backlog is dropping." (Computer & Electronic Products),"Business continues to be sluggish and has fallen slightly as the economic ills continue." (Nonmetallic Mineral Products),"Retailers are still unwilling to gamble on inventory." (Printing & Related Support Activities).
(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in July for the 12th consecutive month, and the overall economy grew for the 15th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "Manufacturing continued to grow during July, but at a slightly slower rate than in June. Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production. July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list."
PERFORMANCE BY INDUSTRY
Ten of the 18 manufacturing industries are reporting growth in July, in the following order: Plastics & Rubber Products; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Primary Metals; Textile Mills; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products. The four industries reporting contraction in July are: Nonmetallic Mineral Products; Furniture & Related Products; Food, Beverage & Tobacco Products; and Machinery.
WHAT RESPONDENTS ARE SAYING...
- "Business in July was strong, the best month since October 2008." (Fabricated Metal Products)
- "Slow economy has killed sales for new equipment orders." (Machinery)
- "Quoting activity and sales are slow, and backlog is dropping." (Computer & Electronic Products)
- "Business continues to be sluggish and has fallen slightly as the economic ills continue." (Nonmetallic Mineral Products)
- "Retailers are still unwilling to gamble on inventory." (Printing & Related Support Activities)
|MANUFACTURING AT A GLANCE
|Customers' Inventories||39.0||38.0||+1.0||Too Low||Slower||16|
|Backlog of Orders||54.5||57.0||-2.5||Growing||Slower||7|
*Number of months moving in current direction
COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY
Commodities Up in Price
Capacitors; Corrugated Containers (5); Paper; Pulp; Steel* (13); and Titanium.
Commodities Down in Price
Machined Steel Parts; Polyethylene, Polypropylene Resins (2); and Steel*.
Commodities in Short Supply
Capacitors; Electrical Components; and Titanium Dioxide.
Note: The number of consecutive months the commodity is listed is indicated after each item.
*Reported as both up and down in price.