US manufacturing growth slows in July
The U.S. manufacturing sector’s expansion slowed slightly in July after two months of gains.
The Institute for Supply Management’s index on Monday showed that factory activity declined to a 52.7 mark last month from 53.5 in June.
Any reading above 50 indicates expansion.
{mosads}The combination of a bad winter, a West Coast ports strike and a surge in the value of the dollar has hurt exporters in recent months, making prices higher abroad for U.S. goods.
The survey of the nation’s supply executives says that the July level still corresponds to a 3 percent increase in gross domestic product.
A report last week showed that the U.S. economy grew at a 2.3 percent annual pace from April through June, bouncing back from severe winter weather.
The ISM’s latest report showed that new orders increased to 56.5 from a reading of 56 in June.
Production rose to 56 from the June posting of 54.
Hiring slipped to 52.7, down 2.8 percentage points from June’s 55.5 reflecting growth at a slower rate.
Meanwhile, inventories contracted in July, falling to 49.5, a decrease of 3.5 percentage points from June’s 53.
Comments from the supply executives reflect optimism mixed with uncertainties about international markets and the effects of the continuing decline in oil prices.
“Oil price decline continues to negatively impact oil and gas industry in North America as many projects are not economically viable,” according to one respondent.
Of the 18 manufacturing industries, 11 reported growth in July.
Computer and electronics producers said that the “the month of July was really slow, slower than the previous month. We are optimistic for the remainder of the year.”
The furniture industry said that “business continues to be strong.”
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.