The Institute for Supply Management’s PMI Index improved by +1.6 points to 54.2 for July, exceeding market expectations and marking a second consecutive month of modest growth (a reading above 50.0 is consistent with expansion) after three months of Coronavirus/Covid19 contraction in March, April and May. Backlog (+6.5 to 51.8), New Orders (+5.1 to 61.5) and Production (+4.8 to 62.1) led the way higher, while Imports (+4.3 to 53.1) and New Export Orders (+2.8 to 50.4) both returned to growth. Of 18 manufacturing sectors, 13 reported growth, two were flat and three—Transportation Equipment, Machinery and Fabricated Metal Products—reported contraction. Here’s what certain respondents to the ISM survey had to say:
- “Orders starting to pick up.” (Chemical Products)
- “Overall business remains down almost 70 percent.” (Transportation Equipment)
- “While demand in [the] coming six months is stabilizing, it is a significant reduction.” (Fabricated Metal Products)
- “Uncertainty regarding our industry and business has not improved.” (Petroleum & Coal Products)
- “Incoming orders are slow…Additional layoffs expected.” (Furniture & Related Products)
- “We are still seeing our customers shut down or effected by COVID-19.” (Miscellaneous Manufacturing)
