The Institute for Supply Management’s PMI Index for July showed continued expansion in manufacturing, although the rate of growth eased. July’s PMI is 58.1, a decrease of 2.1 points from June’s 60.2 (a reading above 50.0 indicates growth). Of the 18 manufacturing sectors ISM tracks, only Primary Metals reported contraction in July. Anecdotal feedback from survey responders suggests tariffs are having an impact:
- “Working on contingency plans for the Chinese tariffs.” (Computer & Electronic Products)
- “Steel cost increases are causing a lot of negotiations.” (Electrical Equipment, Appliances & Components)
- “The steel tariffs are a concern to us.” (Fabricated Metal Products)
- “Tariffs are [resulting in] customs inspection-time increases…” (Plastics & Rubber Products)
- “…supply of aluminum is tight. Also, tariffs are negatively affecting our bottom line…” (Primary Metals)
- “…trade war is now taking its toll…resulting in substantial reductions to new export order.” (Wood Products)
Locally, ISM-Buffalo reported last Friday that its PMI increased 1.0 to 76.0 for June, indicated rapid expansion. The Buffalo PMI has been consistently higher than the national index for the last two years. Buffalo reported that Commodity Prices jumped 14.3 points to a multi-year high of 92.9.