US July ISM manufacturing PMI fell to 59.5, slowing down expansion pace | Anue Juheng-US Stocks

The United States announced on Monday (2nd) that the ISM Manufacturing Purchasing Managers Index (PMI) for July was 59.5. Although it continued to expand, it has been declining for two consecutive months, indicating that the United States has seen production under the influence of supply chain bottlenecks and labor shortages. Slow down the situation.

July U.S. ISM manufacturing PMI breakdown index:
  • New orders index reported 64.9, the previous value was 66.0
  • The production index reported 58.4, the previous value was 60.8
  • Employment index reported 52.9, the previous value was 49.9
  • Supplier delivery index reported 72.5, the previous value was 75.1
  • Inventory index reported 48.9, the previous value was 51.1
  • Client inventory index reported 25.0, the previous value was 30.8
  • The price index reported 85.7, the previous value was 92.1
  • The unfinished order index reported 65.0, the previous value was 64.5
  • Export order index reported 55.7, the previous value was 56.2
  • The raw material import index reported 53.7, the previous value was 61.0
(Picture: ISM)

The production index fell to 58.4 from 60.8 in June, and the new orders index also fell slightly to 64.9. Due to the slowdown in factory production, the uncompleted orders further rose to 65.

The ISM report pointed out that although companies still face difficulties in recruiting manpower, the situation has improved compared with previous months. The employment index in July rose to 52.9 from 49.9 last month, returning to the expansion range.

The supplier’s delivery index reflecting the delivery time dropped to 72.5, showing that the supply chain bottleneck still exists, but it has eased compared with the situation in June. The price index has dropped to 85.7 from a high in more than 40 years, and price pressure is still high.

Timothy Fiore, chairman of the ISM Manufacturing Survey Committee, said that the interviewed companies and their suppliers reported that they are still struggling to meet the continuously increasing level of demand. As the timing advances to the third quarter, all areas of the manufacturing industry are still facing long delivery times and key raw materials. Shortages, rising prices, and transportation difficulties.

Fiore believes that employee absenteeism, parts shortages leading to short-term factory shutdowns, and the dilemma faced in filling vacancies are the main problems that limit the growth potential of the manufacturing industry.

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