July 2015 Manufacturing ISM Report On Business Indicates Growth In Manufacturing for the 31st Consecutive Month

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in July for the 31st consecutive month, and the overall economy grew for the 74th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in July as the PMI registered 52.7 percent, a decrease of 0.8 percentage point below the June reading of 53.5 percent, indicating growth in manufacturing for the 31st consecutive month.

ISM's New Orders Index registered 56.5 percent in July, an increase of 0.5 percentage point when compared to the June reading of 56 percent, indicating growth in new orders for the 32nd consecutive month.

ISM's Production Index registered 56 percent in July, which is an increase of 2 percentage points when compared to the 54 percent reported in June, indicating growth in production for the 35th consecutive month.

ISM's Employment Index registered 52.7 percent in July, which is a decrease of 2.8 percentage points when compared to the 55.5 percent reported in June, indicating growth in employment for the third consecutive month.

The delivery performance of suppliers to manufacturing organizations was faster in July as the Supplier Deliveries Index registered 48.9 percent, which is 0.1 percentage point higher than the 48.8 percent reported in June. This is the second consecutive month supplier deliveries have been faster than the previous month.

The Inventories Index registered 49.5 percent in July, which is 3.5 percentage points lower than the 53 percent registered in June, indicating raw materials inventories are contracting in July following two consecutive months of growth in inventories.

ISM's Backlog of Orders Index registered 42.5 percent in July, a decrease of 4.5 percentage points as compared to the June reading of 47 percent, indicating contraction in order backlogs for the second consecutive month. Of the 87 percent of respondents who measure their backlog of orders, 13 percent reported greater backlogs, 28 percent reported smaller backlogs, and 59 percent reported no change from June.

Of the 18 manufacturing industries, 11 are reporting growth in July in the following order: Textile Mills; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Furniture & Related Products; Fabricated Metal Products; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Transportation Equipment; and Miscellaneous Manufacturing. The five industries reporting contraction in July are: Wood Products; Primary Metals; Plastics & Rubber Products; Chemical Products; and Machinery.

Keywords: Automation, Manufacturing, Process Industries, Discrete Industries, Supply Management, PMI, ISM, ARC Advisory Group.