Manufacturing Growth Rises Again

Manufacturing growth continues to climb upward, according to an Institute for Supply Management report released today.

After June's index reading rose 1.9 percentage points to reach 50.9%, this report brings another month of increasing gains at 55.4%, the highest reading in two years. Based on surveys of purchasing managers, a reading above 50% indicates that the manufacturing economy is generally expanding, while below 50% indicates that it is generally contracting.

Although analysts had expected another solid rise, their 51.3% prediction proved below the mark. July's reading of 55.4% reflects the sixth month of growth, and the highest overall PMI reading, in the first seven months of 2013.

Source: Author, data from ISM. 

On a component-by-component basis, production made a massive 11.6-point gain to hit 65%, the highest reading since May 2004. Employment also picked up another 5.7 points to 54.4%, marking a return to expansion in employment, following only two months of contraction in the past 47 months. New orders headed 6.4 points higher to 58.3% as a potentially positive sign for future sales. This is the highest reading for the index since April 2011.

Inventories, customers' inventories, prices, and order backlogs all fell below the 50% mark, with prices and inventories taking a 3.5-point dip. Exports also fell one point to 53.5%, although imports picked up 1.5 points to 57.5%.

Of the 18 manufacturing industries interviewed for the index, only four (plastics & rubber products, apparel, leather & applied products, machinery, and miscellaneous) reported contraction. Furniture made the largest gains in July, followed by textile mills and printing & related support activities.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2574166, ~/Articles/ArticleHandler.aspx, 10/31/2014 9:37:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement