United States: ISM manufacturing index inches down in July, but remains in expansionary territory
August 3, 2015
In August, the ISM manufacturing index moderated from the 52.7% recorded in July to 51.1% in August, which marked the lowest reading in over two years. The result undershot market expectations of an increase to 52.8%. Moreover, the loss puts the index dangerously close to the 50.0% threshold that distinguishes between expansion and contraction in the manufacturing sector.
The index was dragged down by weaker readings in the production and new orders categories. Employment and inventory levels were down moderately, whereas supplier delivery times increased slightly in August.
Author: Carl Kelly, Economist