United States: ISM manufacturing index continues to rise in July
August 3, 2020
The Institute for Supply Management (ISM) manufacturing index increased from 52.6 in June to 54.2 in July, beating market expectations of 53.6 and marking the highest reading since March 2019. Consequently, the index moved further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
July’s result was driven by strong expansions in production and new orders, while employment improved slightly—but continued to point to a deterioration. Moreover, new export orders and backlogs of work rebounded in July relative to June.
Author: Steven Burke, Economist