The Institute for Supply Management’s (ISM) closely-watched PMI Index of manufacturing activity decreased for the second month in a row, down -1.1 points to 59.5 in July signaling continued growth, but at a slower rate (a reading above 50.0 indicates expansion). The July reading was the lowest since January led by Prices paid falling from an all-time high of 92.1 in June to 85.7, suggesting that supply chain issues may be moderating and providing at least one data point to support Fed Chair Jerome Powell’s argument that inflation may be short-lived as supply catches up to demand. Only Inventories at 48.9 and Customer Inventories at 25.0 showed contraction in July. Overall, this level of manufacturing activity may be more sustainable compared to the red-hot growth from earlier this year. See the full report here.