The report notes that manufacturing registered growth in July for the fifth consecutive month, as 12 of 18 industries reported an increase in new orders in July (same as in June), and nine of 18 industries reported an increase in production in July (down from 12 in June).
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The ISM said its purchasing managers index dipped to 52.6 in July from 53.2 in June, although a reading above 50 still indicates growth in the manufacturing sector.
In this April 6, 2016, photograph, a technician files down an imperfection on the door frame of an unpainted Titan truck as she also inspects the stamping for imperfections that can be eliminated prior to the vehicle going to the paint shop at the Nissan Canton Vehicle Assembly Plant in Canton, Miss.
A downturn in employment in the manufacturing sector contributed to the decrease by the headline index, as the employment index fell to 49.4 in July from 50.4 in June. The Labor Department on Friday will release its closely watched jobs report for July.
The U.S. manufacturing sector has stumbled in the face of a strong dollar, which makes exports more expensive for foreign customers, and low oil prices that have squeezed domestic energy producers. Seven industries including textile mills, printing and related support activities, and miscellaneous manufacturing reported contraction, while eight industries reported expansion. But he added that continuing global economic weakness means that “a strong recovery in manufacturing activity remains unlikely in the near term”.
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The U.K.’s June 23 referendum vote to leave the European Union briefly rocked global financial markets and sent the dollar higher against other major currencies including the pound. An ISM survey in late June found few US manufacturers or service-sector firms expected significant effects on their businesses. The decision raises doubts about the future of trade between Britain and the EU. But the details were a bit better.
