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Wednesday, August 12, 2020 9:18:27 AM EDT

Ism Index Updated 03-Aug-20 10:44AM ET

The ISM Manufacturing Index for July increased to 54.2% ( 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.
Total Index54.252.643.141.549.1
Export Orders50.447.639.535.346.6
Prices paid (not seas adj)53.251.340.835.337.4