by Calculated Risk on 8/02/2021 10:03:00 AM

(Posted with permission). The ISM manufacturing index indicated expansion in July. The PMI® was at 59.5% in July, down from 60.6% in June. The employment index was at 52.9%, up from 49.9% last month, and the new orders index was at 64.9%, down from 66.0%.

From ISM: July 2021 Manufacturing ISM® Report On Business®

conomic activity in the manufacturing sector grew in July, with the overall economy notching a 14th consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:

“The July Manufacturing PMI® registered 59.5 percent, a decrease of 1.1 percentage points from the June reading of 60.6 percent. This figure indicates expansion in the overall economy for the 14th month in a row after contraction in April 2020. The New Orders Index registered 64.9 percent, decreasing 1.1 percentage points from the June reading of 66 percent. The Production Index registered 58.4 percent, a decrease of 2.4 percentage points compared to the June reading of 60.8 percent. The Prices Index registered 85.7 percent, down 6.4 percentage points compared to the June figure of 92.1 percent, which was the index’s highest reading since July 1979 (93.1 percent). The Backlog of Orders Index registered 65 percent, 0.5 percentage point higher than the June reading of 64.5 percent. The Employment Index registered 52.9 percent, 3 percentage points higher compared to the June reading of 49.9 percent. The Supplier Deliveries Index registered 72.5 percent, down 2.6 percentage points from the June figure of 75.1 percent. The Inventories Index registered 48.9 percent, 2.2 percentage points lower than the June reading of 51.1 percent. The New Export Orders Index registered 55.7 percent, a decrease of 0.5 percentage point compared to the June reading of 56.2 percent. The Imports Index registered 53.7 percent, a 7.3-percentage point decrease from the June reading of 61 percent.”
emphasis added

This was below expectations.

This suggests manufacturing expanded at a slower pace in July than in June.