Breaking: US Manufacturing PMI Declines Further in July

Manufacturing activity in the United States experienced a sharper decline in July, according to the latest report from the Institute for Supply Management (ISM). The Manufacturing US PMI registered at 46.8%, down from 48.5% in June, indicating contraction for the 20th time in the past 21 months.

Key Index Highlights:

• New Orders Index: Decreased to 47.4% from 49.3% in June, continuing to signal contraction.

• Production Index: Fell to 45.9%, a drop of 2.6 percentage points from the previous month.

• Prices Index: Slightly increased to 52.9%, up 0.8 percentage points from June.

Insights from ISM

"Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and other conditions. Production execution was down compared to June, likely adding to revenue declines, putting additional pressure on profitability. Suppliers continue to have capacity, with lead times improving and shortages not as severe," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee.

Market Reaction

The report underlines persistent challenges in the US manufacturing sector, reflecting ongoing issues related to demand, production, and investment.