Posted on 08/01/2022 7:17:58 AM PDT by ConservativeInPA
New Orders and Employment Contracting Production and Backlogs Growing Supplier Deliveries Slowing at a Slower Rate Raw Materials Inventories Growing; Customers’ Inventories Too Low Prices Increasing at a Slower Rate; Exports and Imports Growing Record-Long Lead Times for Production Materials and MRO Supplies
Tempe, Arizona) — Economic activity in the manufacturing sector grew in July, with the overall economy achieving a 26th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®. The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The July Manufacturing PMI® registered 52.8 percent, down 0.2 percentage point from the reading of 53 percent in June. This figure indicates expansion in the overall economy for the 26th month in a row after a contraction in April and May 2020. This is the lowest Manufacturing PMI® figure since June 2020, when it registered 52.4 percent. The New Orders Index registered 48 percent, 1.2 percentage points lower than the 49.2 percent recorded in June. The Production Index reading of 53.5 percent is a 1.4-percentage point decrease compared to June’s figure of 54.9 percent. The Prices Index registered 60 percent, down 18.5 percentage points compared to the June figure of 78.5 percent; this is the index’s lowest reading since August 2020 (59.5 percent). The Backlog of Orders Index registered 51.3 percent, 1.9 percentage points below the June reading of 53.2 percent. The Employment Index contracted for a third straight month at 49.9 percent, 2.6 percentage points higher than the 47.3 percent recorded in June. The Supplier Deliveries Index reading of 55.2 percent is 2.1 percentage points lower than the June figure of 57.3 percent. The Inventories Index registered 57.3 percent, 1.3 percentage points higher than the June reading of 56 percent. The New Export Orders Index reading of 52.6 percent is up 1.9 percentage points compared to June’s figure of 50.7 percent. The Imports Index grew again in July, up 3.7 percentage points to 54.4 percent from 50.7 percent in June.”
At least we aren’t in a recession.
Yep, my anecdotal impression is that the economy is decelerating.
Still lots of excess money sloshing around, but with inflation and all, people are battening down the hatches for the storm ahead.
Slowing growth is how you cure inflation. This is the Fed, belatedly, doing its job.
A PMI above 50 does represent an expansion when compared with the previous month. However, note that the PMI decreased:
“The July Manufacturing PMI® registered 52.8 percent, DOWN 0.2 percentage point from the reading of 53 percent in June…This is the LOWEST Manufacturing PMI® figure since June 2020.”
(Another thing to watch for later in the week is US payrolls on Friday.)
Slowing government spending would really help as well, plus increasing the oil supply.
Weekly unemployment claims have been up the past three weeks, around 245k. July will be flat at best.
Americans love to spend — whether they have money or not.
Yeah, its easy to forget these are numbers for summer and the seasonality that goes with it….Of course we are also dealing with leftist who will cook the books regardless
“Americans love to spend — whether they have money or not.”
Ain’t that the truth.
A roaring economy, happy days are here again. Thank the Lord for Biden and Harris! /s
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.