United States: Manufacturing climbs to over-three-year high in July
July 1, 2014
In July, the ISM manufacturing index climbed to 57.1% from the 55.3% recorded in June. The result exceeded the 56.0% the market had expected and marked the highest reading since April 2011. Moreover, the index pushed further above the 50.0% threshold that indicates expansion in the manufacturing sector.
Large gains in the employment and new-orders categories were behind the positive result, with employment hitting the highest point since June 2011. Supplier deliveries and production also registered gains. Meanwhile, inventories dipped into contraction territory, which reflects the increase in activity. In addition, 17 of the 18 industries tracked by the ISM reported growth in July.
Author: Carl Kelly, Economist