Economic activity in the manufacturing sector grew in July for the 38th consecutive month, while the overall economy grew for the 57th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report on Business.
Institute for Supply Management (ISM) announces July 2006 manufacturing index summaries:
PMI The PMI indicates that the manufacturing economy grew in July for the 38th consecutive month as it registered 54.7 percent, an increase of 0.9 percentage point when compared to June's reading of 53.8 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
New Orders ISM's New Orders Index registered 56.1 percent in July. The index is 1.8 percentage points lower than the 57.9 percent registered in June. July is the 39th consecutive month the index has exceeded 50 percent.
Production ISM's Production Index registered 57.6 percent in July, 2.5 percentage points higher than the 55.1 percent reported in June. July is the 39th consecutive month of growth in the index.
Inventories Manufacturers' inventories expanded in July as ISM's Inventories Index registered 50.5 percent, a 3.6 percentage point increase when compared to June's reading of 46.9 percent.
Prices In July, the ISM Prices Index was 78.5 percent, indicating manufacturers are paying higher prices on average when compared to June. While 39 percent of supply executives reported paying the same prices and 2 percent reported paying lower prices, the majority of respondents (59 percent) reported that prices were higher than the preceding month.
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