Fra ISM:
July 2016 Manufacturing ISM® Report On Business®
FOR RELEASE: August 1, 2016
| Contact: | Kristina Cahill Report On Business® Analyst ISM®, ROB/Research Manager Tempe, Arizona 800/888-6276, Ext. 3015 E-mail: [email protected] |
PMI® at 52.6%
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of July 2016.
PMI® at 52.6%
New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Slowing
(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in July for the fifth consecutive month, while the overall economy grew for the 86th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The July PMI® registered 52.6 percent, a decrease of 0.6 percentage point from the June reading of 53.2 percent.
The New Orders Index registered 56.9 percent, a decrease of 0.1 percentage point from the June reading of 57 percent. The Production Index registered 55.4 percent, 0.7 percentage point higher than the June reading of 54.7 percent. The Employment Index registered 49.4 percent, a decrease of 1 percentage point from the June reading of 50.4 percent. Inventories of raw materials registered 49.5 percent, an increase of 1 percentage point from the June reading of 48.5 percent.
The Prices Index registered 55 percent, a decrease of 5.5 percentage points from the June reading of 60.5 percent, indicating higher raw materials prices for the fifth consecutive month. Manufacturing registered growth in July for the fifth consecutive month, as 12 of our 18 industries reported an increase in new orders in July (same as in June), and nine of our 18 industries reported an increase in production in July (down from 12 in June).”
Of the 18 manufacturing industries, 11 are reporting growth in July in the following order: Textile Mills; Printing & Related Support Activities; Miscellaneous Manufacturing; Wood Products; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; and Computer & Electronic Products. The seven industries reporting contraction in July — listed in order — are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Machinery; Primary Metals; Transportation Equipment; and Paper Products.
WHAT RESPONDENTS ARE SAYING …
- “With Brexit, keeping [a] close eye on how this will impact our business.” (Chemical Products)
- “Stronger than expected end to Q2 (June) saw us beat our forecast which is the first time in five quarters, though we were still below Annual Operation Plan (AOP).” (Computer & Electronic Products)
- “Strong demand in our market has business in an upswing.” (Nonmetallic Mineral Products)
- “International capital orders are increasing.” (Fabricated Metal Products)
- “Brexit has not impacted our business thus far.” (Food, Beverage & Tobacco Products)
- “Retail sales have really slowed in the last 45 days. Our industry is seeing it everywhere. Steel prices are rising.” (Machinery)
- “Seems to be a bit more optimism in the markets. But, U.S. Presidential race might dampen the mood.” (Plastics & Rubber Products)
- “Demand and industry production are both slowing down.” (Transportation Equipment)
- “Oversupply continues to dominate demand. Poor weather is having a negative impact on building, creating short term slow demand.” (Wood Products)
- “Oil and gas industry sector continues to realign staff to reflect $40-$50/barrel oil. This price range is seen as the new normal for the foreseeable future.” (Petroleum & Coal Products)
| MANUFACTURING AT A GLANCE JULY 2016 | ||||||
|---|---|---|---|---|---|---|
Index | Series Index Jul | Series Index Jun | Percentage Point Change | Direction | Rate of Change |
Trend* (Months) |
| PMI® | 52.6 | 53.2 | -0.6 | Growing | Slower | 5 |
| New Orders | 56.9 | 57.0 | -0.1 | Growing | Slower | 7 |
| Production | 55.4 | 54.7 | +0.7 | Growing | Faster | 7 |
| Employment | 49.4 | 50.4 | -1.0 | Contracting | From Growing | 1 |
| Supplier Deliveries | 51.8 | 55.4 | -3.6 | Slowing | Slower | 3 |
| Inventories | 49.5 | 48.5 | +1.0 | Contracting | Slower | 13 |
| Customers’ Inventories | 51.0 | 51.0 | 0.0 | Too High | Same | 2 |
| Prices | 55.0 | 60.5 | -5.5 | Increasing | Slower | 5 |
| Backlog of Orders | 48.0 | 52.5 | -4.5 | Contracting | From Growing | 1 |
| New Export Orders | 52.5 | 53.5 | -1.0 | Growing | Slower | 5 |
| Imports | 52.0 | 52.0 | 0.0 | Growing | Same | 2 |
| OVERALL ECONOMY | Growing | Slower | 86 | |||
| Manufacturing Sector | Growing | Slower | 5 | |||
Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.
