Economic activity in the manufacturing sector expanded in July for the 12th consecutive month while the overall economy grew for the 15th consecutive month, according to supply executives surveyed for the latest Manufacturing ISM Report On Business. Eighteen total industries are monitored by the survey and 10 reported July growth; the Electrical Equipment, Appliances & Components industry was the fourth highest in the index growth ranking for July.
"Manufacturing continued to grow during July, but at a slightly slower rate than in June," said Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production."
The PMI is a composite index based on five indicators: new orders, production, employment, supplier deliveries, and inventories. The PMI in July was 55.5, down slightly from 56.2 in June 2010. A reading above 50% indicates the manufacturing economy is generally expanding.
The 10 manufacturing industries reporting growth in July were, in order:
• Plastics & Rubber Products
• Miscellaneous Manufacturing
• Paper Products
• Electrical Equipment, Appliances & Components
• Transportation Equipment
• Primary Metals
• Textile Mills
• Computer & Electronic Products
• Fabricated Metal Products
• Chemical Products
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