The overall economy grew for the eighty-sixth straight time, while the manufacturing sector expanded for the fifth month in a row, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index decreased to 52.6 in July from 53.2 in June.
Economists polled by Thomson Reuters predicted the index would be 53.0.
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 slid to 55.0 from 60.5. The employment index fell to 49.4 from 50.4.
The production index climbed to 55.4 from 54.7, the new orders index dipped to 56.9 from 57.0; the supplier deliveries index dropped to 51.8 from 55.4; the export orders index decreased to 52.5 from 53.5; and the imports index held at 52.0.
The inventories index increased to 49.5 from 48.5; the customers' inventories index remained at 51.0 from 51.0; and backlog of orders fell to 48.0 from 52.5.
Respondents' comments included:
- "With Brexit, keeping [a] close eye on how this will impact our business." (Chemical Products)
- "Stronger than expected end to Q2 (June) saw us beat our forecast which is the first time in five quarters, though we were still below Annual Operation Plan (AOP)." (Computer & Electronic Products)
- "Strong demand in our market has business in an upswing." (Nonmetallic Mineral Products)
- "International capital orders are increasing." (Fabricated Metal Products)
- "Brexit has not impacted our business thus far." (Food, Beverage & Tobacco Products)
- "Retail sales have really slowed in the last 45 days. Our industry is seeing it everywhere. Steel prices are rising." (Machinery)
- "Seems to be a bit more optimism in the markets. But, U.S. Presidential race might dampen the mood." (Plastics & Rubber Products)
- "Demand and industry production are both slowing down." (Transportation Equipment)
- "Oversupply continues to dominate demand. Poor weather is having a negative impact on building, creating short term slow demand." (Wood Products)
- "Oil and gas industry sector continues to realign staff to reflect $40-$50/barrel oil. This price range is seen as the new normal for the foreseeable future." (Petroleum & Coal Products)
