The ISM Manufacturing Index for July increased to 54.2% (Briefing.com consensus 53.4%) from 52.6% in June.
This was the second straight month the index has been above 50.0% (the demarcation level between expansion and contraction) after cratering to a low of 41.5% in April (the lowest since April 2009).
The New Orders Index climbed to 61.5% from 56.4%.
The Production Index rose to 62.1% from 57.3%.
The Employment Index increased to 44.3% from 42.1%.
The Prices Index jumped to 53.2% from 51.3%.
The Backlog of Orders Index advanced to 51.8% from 45.3%.
The New Export orders Index edged up to 50.4% from 47.6%.The key takeaway from the report rests in the understanding that manufacturing conditions are rebounding from the abyss of three straight monthly contractions (March-May). To be sure, manufacturing conditions were better in July than they were in prior months, but it is still a stretch to say that manufacturing activity is robust since uncertainty about the demand outlook remains high.
|Prices paid (not seas adj)||53.2||51.3||40.8||35.3||37.4|