August 1, 2017

July 2017 ISM Manufacturing: 56.3 Percent, Down From 57.8 Percent in June; Still in Strong Expansion

Filed under: Economy — Tom @ 1:19 pm

From the Institute for Supply Management:

July2017ISMmfgOn080117

The New Orders and Production figures are both over 60, which is actually a bit of a relief because June’s numbers showed signs of overheating, which if continued could cause long-term inflation and the inability of the supply chain to keep up with heightened activity. The Prices Paid figure did jump into the 60s, and the activity indicators probably need to stay where they are or slow down to keep the Prices Paid from jumping further upward.

The Backlog of Orders figure, the third of the key GDP drivers in this report, stayed very positive.

Though manufacturing is just 12 percent of the economy, it’s serving as a pretty strong 12 percent right now. Even after considering this survey’s likely positive-selection bias, it’s clearly in a strong expansion mode.

Share

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.