Activity in the U.S. manufacturing sector unexpectedly grew at a slower rate in the month of July, the Institute for Supply Management revealed in a report on Monday.
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“Overall, we view the details of the July ISM as a bit more positive than the headline index would suggest, but expect domestic manufacturing to remain sluggish” in the third quarter, Barclays economist Jesse Hurwitz said in a note to clients. It is constructed so that any level at 50 or above signifies growth in the manufacturing sector.
The Institute of Purchasing Managers’ index slid to 52.7 last month from 53.5 in June.
The Commerce Department reported last Monday that orders to U.S. factories for big-ticket goods rose sharply in June, though the gain was driven by a surge in demand for commercial aircraft – a volatile category.
The index, which was supposed to be published at 10 a.m. Eastern Daylight Time, was “inadvertently released” early, institute spokeswoman Kristina Cahill said by email.
The inventories index also dropped to 49.5 in July from 53.0 in June, indicating a contraction compared to the growth seen in the previous month.
New orders rose to 56.5, up from 56.0 in June and marking the highest reading since December.
The Production Index was 56.0%, 2.0 percentage points above the June reading of 54.0%.
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Both new export orders and imports fell 1.5 percent.
