The overall economy grew for the seventy-fourth straight time, while the manufacturing sector expanded for the thirty-first consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index decreased to 52.7 in July from 53.5 in June.
Economists polled by Thomson Reuters predicted the index would hold at 53.5.
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 slid to 44.0 from 49.5. The employment index fell to 52.7 from 55.5.
The production index gained to 56.0 from 54.0, the new orders index grew to 56.5 from 56.0; the supplier deliveries index crept to 48.9 from 48.8; the export orders index decreased to 48.0 from 49.5; and the imports index slid to 52.0 from 53.5.
The inventories index declined to 49.5 from 53.0; the customers' inventories index dropped to 44.0 from 48.5; and backlog of orders fell to 42.5 from 47.0.
Respondents' comments included:
- "AI [Avian Influenza] fears in poultry industry [are] killing exports." (Food, Beverage & Tobacco Products)
- "The market is in the summer slow-down." (Fabricated Metal Products)
- "Oil price decline continues to negatively impact Oil & Gas industry in North America as many projects are not economically viable. Oil & Gas jobs outlook is in retrenchment. Petrochemical (refining and chemical manufacturing) is positive from a margin perspective, but focus is steady on safe cost containment." (Petroleum & Coal Products)
- "Falling oil prices are once again driving chemical raw materials prices lower and creating an expectation of even lower prices in the coming months." (Chemical Products)
- "The month of July was really slow, slower than the previous month. We are optimistic for the remainder of the year." (Computer & Electronic Products)
- "Global orders still holding up in the wake of international uncertainties." (Fabricated Metal Products)
- "Business conditions are stable, little change from last month." (Miscellaneous Manufacturing)
- "There's an abundance of containerboard in the global markets." (Paper Products)
- "Inbound logistics are almost back to normal." (Machinery)
- "Business continues to be strong." (Furniture and Related Products)
