U.S. manufacturing activity has entered deeper into contraction…. First time in a long time, bad news is just bad news.

Sharing is Caring!

Weak demand, declining output, and cautious employment trends characterize the sector. The Prices Index shows some inflationary pressures, but overall, challenges persist.

Details:

Manufacturing PMI®: The Manufacturing PMI® registered 46.8 percent in July, down 1.7 percentage points from the 48.5 percent recorded in June. This marks the fourth consecutive month of contraction for the manufacturing sector.
New Orders Index: The New Orders Index remained in contraction territory, registering 47.4 percent, which is 1.9 percentage points lower than June’s reading of 49.3 percent.
Production Index: The July reading of the Production Index stands at 45.9 percent, 2.6 percentage points lower than June’s figure of 48.5 percent.
Prices Index: The Prices Index increased slightly to 52.9 percent, up 0.8 percentage point compared to June’s reading of 52.1 percent.
Backlog of Orders Index: The Backlog of Orders Index remained at 41.7 percent, equaling its June reading. This index reflects strong contraction in order backlogs.
Employment Index: The Employment Index registered 43.4 percent, down 5.9 percentage points from June’s figure of 49.3 percent. This indicates a decline in employment within the manufacturing sector.
Supplier Deliveries Index: Supplier deliveries slowed, registering 52.6 percent, which is 2.8 percentage points higher than the 49.8 percent recorded in June. (Note: Supplier Deliveries is inversed; a reading above 50 percent indicates slower deliveries as the economy improves and customer demand increases.).
Inventories Index: The Inventories Index stood at 44.5 percent, down 0.9 percentage point compared to June’s reading of 45.4 percent.
Export and Import Orders: The New Export Orders Index increased slightly to 49 percent, while the Imports Index remained in contraction territory at 48.6 percent.