According to ISM, indexes for production, new orders, imports and exports, and order backlogs all grew last month, extending positive June results.
The outlook for manufacturing continued to recover through July as the Institute for Supply Management reported a second month of manufacturing growth and a third month of growth for the economy overall. The ISM’s Pricing Manager’s Index increased to 54.2%, up 1.6 points from June’s PMI. Indexes for new orders, production, prices, and order backlogs all increased. The employment index also increased, but remained below 50%, indicating a slower contraction. Imports and new export orders indexes moved into growth territory in July.
The index of new orders rose to 61.5% in July, up 5.1 points from June, as the production index rose 4.8 points to 62.1%. The manufacturing PMI as well as the new orders and production indexes are all rising at a faster rate compared to last month. The rate of contraction in the manufacturing workforce slowed in July as the index for manufacturing employment rose 2.2 points to 44.3% in July. The indexes for order backlogs, new export orders, and imports all reversed June trends and moved into growth territory: the backlog of orders index rose 6.5 points to 51.8%, new export orders rose 2.8 points to 50.4%, and imports rose 4.3 points to 53.1%.
In commodities, aluminum, copper, crude oil, diesel fuel, high-density polyethylene, lumber, oil-based products, plastic products, polypropylene, and precious metals all rose in price as steel and diesel fuel fell.