Economic activity in the U.
S. manufacturing sector grew in July at the fastest pace in more than four years, boosted by higher production and orders as the Gulf War in the Middle East kept price pressures high. The Institute for Supply Management's (ISM) Purchasing Managers' Index was 55.6 in July, up from 53.3 in June, marking the seventh consecutive month of growth and the highest since May 2022. Values above 50 signal growth, while values below this level signal contraction.
The manufacturing index rose to 58.5 in July from 52.2 in the previous month, marking the ninth consecutive month of growth and the highest reading since November 2021.
"The manufacturing sector has moved to a faster pace," the Oxford Economic said in a note. "Demand for defense and semiconductor equipment remains the highest, and we expect these sectors to drive growth."
The new orders index rose to 56.7 in July from 56 in the previous month, which is also the seventh month of growth. New export orders
They rose to 53 in July after falling to 48.5 in the previous month.
"Geopolitical risks, especially in the Middle East related to commodity and energy markets, remain a concern," ISM said in a response to a survey conducted by the head of the transportation equipment department. "Due to the conflicts in the Red Sea, the Strait of Hormuz and the Suez Canal, there has been a slight increase in the cost and transit time for transportation on other routes."
The price index was 71.1, down from 73, but still rising for the 22nd consecutive month. Aluminum, copper, freight transportation, fuel, metal products, petroleum products, semiconductors, soybean meal and steel products were among the goods that rose in price. The employment index rose to 52.8 from 49.7 in June, marking the first increase in 33 months. Stocks
Decreased from 51.4 to 51.2 in July, indicating a slowdown in growth.
"We are witnessing a very opportunistic and reactive market," says the review published by the head of the chemical company response. "Some customers are reducing inventory, others are increasing demand."