Economic activity in the overall U.S. manufacturing sector expanded in July, but the Electrical Equipment, Appliances & Components was one of the segments tracked by ISM that showed contraction in July, according to the Manufacturing ISM Report On Business from the Institute for Supply Management.
Overall manufacturing growth, according to the ISM report, grew for the 24th consecutive month and the overall economy grew for the 26th consecutive month.
"The PMI registered 50.9%, a decrease of 4.4 percentage points, indicating expansion in the manufacturing sector for the 24th consecutive month, although at a slower rate of growth than in June," said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The rate of increase in prices slowed for the third consecutive month, dropping 9 percentage points in July to 59%. In the last three months combined, the Prices Index has declined by 26.5 percentage points, dropping from 85.5% in April to 59% in July. Despite relief in pricing, however, several comments suggest a slowdown in domestic demand in the short term, while export orders continue to remain strong."
Of the 18 manufacturing industries tracked by ISM, 10 reported July growth:
• Paper Products
• Furniture & Related Products
• Computer & Electronic Products
• Transportation Equipment
• Wood Products
• Petroleum & Coal Products
• Printing & Related Support Activities
• Primary Metals
• Fabricated Metal Products
• Nonmetallic Mineral Products
Seven industries reporting contraction in July:
• Apparel, Leather & Allied Products
• Plastics & Rubber Products
• Textile Mills
• Electrical Equipment, Appliances & Components
• Food, Beverage & Tobacco Products
• Chemical Products
The 18th industry segment tracked by ISM is Miscellaneous Manufacturing.
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