Posted August 1, 2019

Manufacturing expanded at slower pace in July

Manufacturing expanded at a slower pace in July compared to the month of June.

The Institute for Supply's Management's purchasing index registered 51.2 percent, a decrease of 0.5 percentage point from the June reading of 51.7 percent.

This is the lowest reading since August 2016, when the index registered 49.6 percent.

“This indicates growth in manufacturing for the 35th consecutive month. The PMI continued a period of expansion softening, with four straight months of expansion decline. Softening this month was primarily due to slower growth in demand and consumption, indicated by the New Orders, Production and Employment indexes. Four of the six big industries expanded, as was the case in June, but at lower levels,” said Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

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