MARKETPULSE
According to the latest Manufacturing ISM Report on Business, economic activity in the manufactur- ing sector expanded in July for the 31st consecutive month, and the overall economy grew for the 74th
consecutive month. A reading above 50 indicates general
expansion, and the July PMI registered at 52.7 percent.
Bradley J. Holcomb, CPSM, CPSD, chair of the Institute
for Supply Management (ISM) Manufacturing Business
Survey Committee states, “I’m pleased that we’re off to
such a good start for 2015 and, at 52.7 percent, I think
that we’re in good shape in terms of the potential for
continuous growth for the rest of the year.”
Of the 18 manufacturing industries, 11 are reporting
growth in July. The most positive number on the page is
“new orders” at 56.5, which is a new high for the year.
“We’re in great shape as far as I can see,” says Holcomb.
Orders, Production and Inventory
The New Orders Index registered at 56.5 percent in July,
up from June’s 56.0 percent by 0.5 percentage points. This
indicates growth in new orders for the 32nd consecutive
month. Holcomb said that the number for “New Orders”
was, by far, the best number in the report.
The Production Index registered at 56.0 percent in July,
which is an increase of 2.0 percentage points from June’s
54.0 percent. The number is still well above 51.1 percent,
which indicates growth over time.
The Backlog of Orders Index registered 42. 5 percent in
July, which was a decrease of 4. 5 percentage points from
June’s reading of 47 percent. This indicates a contraction
in order backlogs for the second consecutive month.
The Inventories Index also decreased in July. It regis-
tered 49.5 percent, which is 3. 5 percentage points lower
Bradley J.
Holcomb, Chair of
ISM Mfg ROB
ISM Report: Economy Positioned
For Continuous Growth In 2015
Index Series Series Percentage Direction Rate of Trend*
Index Index Point Change (Months)
Jul Jun Change
PMI® 52.7 53.5 -0.8 Growing Slower 31
New Orders 56.5 56.0 +0.5 Growing Faster 32
Production 56.0 54.0 + 2.0 Growing Faster 35
Employment 52.7 55.5 - 2. 8 Growing Slower 3
Supplier Deliveries 48. 9 48. 8 +0.1 Faster Slower 2
Inventories 49.5 53.0 - 3. 5 Contracting FromGrowing 1
Customers’ 44.0 48. 5 - 4. 5 Too Low Faster 8
Inventories
Prices 44.0 49.5 - 5. 5 Decreasing Faster 9
Backlog of Orders 42. 5 47.0 - 4. 5 Contracting Faster 2
Exports 48.0 49.5 -1.5 Contracting Faster 2
Imports 52.0 53.5 -1.5 Growing Slower 30
OVERALL ECONOMY Growing Slower 74
Manufacturing Sector Growing Slower 31
MANUFACTURING AT A GLANCE: July 2015
