The overall economy grew for the sixty-second straight time, while the manufacturing sector expanded for the fourteenth consecutive month, the Institute for Supply Management reported Friday.
According to the ISM's monthly report on business, the ISM index gained to 57.1 in July from 55.3 in June.
Economists polled by Thomson Reuters predicted the index would rise to 56.0.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index increased to 59.5 from 58.0. The employment index rose to 58.2 from 52.8.
The production index climbed to 61.2 from 60.0, the new orders index rose to 63.4 from 58.9; the supplier deliveries index grew to 54.1 from 51.9; the export orders index dropped to 53.0 from 54.5; and the imports index fell to 52.0 from 57.0.
The inventories index slid to 48.5 from 53.0; the customers' inventories index declined to 43.5 from 46.5; and backlog of orders increased to 49.5 from 48.0.
Respondents' comments included:
"Status quo sales are okay (not great). Costs are generally flat." (Food, Beverage & Tobacco Products)
"We see slow growth in business as we see a slow growing economy." (Fabricated Metal Products)
"Business is still very good and we are very optimistic for the rest of the year." (Transportation Equipment)
"Bookings down, but shipments strong." (Electrical Equipment, Appliances & Components)
"Overall business conditions still good in our industry." (Computer & Electronic Products)
"Geopolitics still present a considerable risk as well as the European market." (Chemical Products)
"Contractors are very busy. Difficult time getting many to bid, especially electrical." (Paper Products)
"Salaries for engineering labor continue to increase above general inflation due to market competition and shortages in certain specialty skills." (Petroleum & Coal Products)
"Economy shows many signs of strength." (Machinery)
"Russia's demand for medical devices from the U.S. has dropped by 40 percent." (Miscellaneous Manufacturing)
