8/2, 4:00 PM (Source: TeleTrader)
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ISM: US manufacturing PMI at 59.5% in July

United States manufacturing activity decreased in July with the Purchasing Managers' Index (PMI) reaching 59.5%, falling well below market expectations, according to a report published by the Institute for Supply Management (ISM) on Monday. This marks a loss of 1.1 percentage points (ppts) when compared to the previous month, but is still indicative of a fourteen-month overall expansion.

For the same period, the New Orders PMI and the Production Index dropped 1.1 ppts and 2.4 ppts month-on-month respectively to land at 64.9% and 58.4% respectively. Meanwhile, the Prices Index fell 6.4 ppts to 85.7%. However, the Employment Index marked a monthly increase of 3 ppts, going from 49.9% to 52.9%.

Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee, commented on the report: "As we enter the third quarter, all segments of the manufacturing economy are impacted by near record-long raw-material lead times, continued shortages of critical basic materials, rising commodities prices and difficulties in transporting products. Worker absenteeism, short-term shutdowns due to parts shortages, and difficulties in filling open positions continue to be issues limiting manufacturing-growth potential."

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