July 2021 Manufacturing ISM Report On Business Reports 17 of 18 Manufacturing Industries Reported Growth in July

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 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.

Manufacturing grew in July, as the Manufacturing PMI registered 59.5 percent, 1.1 percentage points lower than the June reading of 60.6 percent, continuing to indicate strong sector expansion and U.S. economic growth in July.

ISM’s New Orders Index registered 64.9 percent in July, down 1.1 percentage points compared to the 66 percent reported in June, and this indicates that new orders grew for the 14th consecutive month.

The Production Index registered 58.4 percent in July, 2.4 percentage points lower than the June reading of 60.8 percent, indicating growth for the 14th consecutive month.

ISM’s Employment Index registered 52.9 percent in July, 3 percentage points higher than the June reading of 49.9 percent, thus returning to expansionary territory after dipping below 50 percent.

The delivery performance of suppliers to manufacturing organizations was slower in July, as the Supplier Deliveries Index registered 72.5 percent, 2.6 percentage points lower than the 75.1 percent reported in June and the second straight month of slowing expansion.

The Inventories Index registered 48.9 percent in July, 2.2 percentage points lower than the 51.1 percent reported for June, reversing two months of expansion.

ISM’s Backlog of Orders Index registered 65 percent in July, a 0.5-percentage point increase compared to the 64.5 percent reported in June, indicating order backlogs expanded for the 13th straight month.

Seventeen of 18 manufacturing industries reported growth in July, in the following order: Furniture & Related Products; Printing & Related Support Activities; Apparel, Leather & Allied Products; Miscellaneous Manufacturing; Computer & Electronic Products; Nonmetallic Mineral Products; Machinery; Fabricated Metal Products; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; Primary Metals; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Wood Products; and Petroleum & Coal Products. The only industry reporting a decrease in July compared to June was Textile Mills.