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Purchasing Managers Index: Difference between revisions
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== '''ISM''' == | == '''ISM''' == | ||
=== July 2023 === | |||
==== Manufacturing ==== | |||
The July Manufacturing PMI registered 46.4 percent, 0.4 percentage point higher than the 46 percent recorded in June. Regarding the overall economy, this figure indicates an eighth month of contraction after a 30-month period of expansion. '''Ninety-two percent of manufacturing gross domestic product (GDP) contracted in July, up from 71 percent in June. However, the share of manufacturing GDP registering a composite PMI<sup>®</sup> calculation at or below 45 percent — a good barometer of overall manufacturing weakness — was 25 percent in July, compared to 44 percent in June, a clear positive.''' <ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/july/</ref> | |||
“The U.S. manufacturing sector shrank again, but the uptick in the PMI indicates a marginally slower rate of contraction. The July composite index reading reflects companies continuing to manage outputs down as order softness continues. Demand eased again, with the (1) New Orders Index contracting, though at a slower rate, (2) New Export Orders Index moving deeper into contraction and (3) Backlog of Orders Index improving compared to June but remaining at a low level. The Customers’ Inventories Index reading indicated appropriate buyer/supplier tension, which is neutral to slightly positive for future production. " | |||
* The New Orders Index remained in contraction territory at 47.3 percent, 1.7 percentage points higher than the figure of 45.6 percent recorded in June. | |||
* The Production Index reading of 48.3 percent is a 1.6-percentage point increase compared to June’s figure of 46.7 percent. | |||
* The Prices Index registered 42.6 percent, up 0.8 percentage point compared to the June figure of 41.8 percent. | |||
* The Backlog of Orders Index registered 42.8 percent, 4.1 percentage points higher than the June reading of 38.7 percent. | |||
* The Employment Index dropped further into contraction, registering 44.4 percent, down 3.7 percentage points from June’s reading of 48.1 percent. | |||
==== Services ==== | |||
In July, the Services PMI registered 52.7 percent, 1.2 percentage points lower than June’s reading of 53.9 percent. '''The composite index indicated growth in July for the seventh consecutive month''' after a reading of 49.2 percent in December, which was the first contraction since June 2020. '''Fourteen industries reported growth in July.''' The Services PMI<sup>®</sup>, by being above 50 percent for the seventh month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector. The composite index has indicated expansion for all but three of the previous 161 months <ref>https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/services/july/</ref> | |||
“There has been a slight pullback in the rate of growth for the services sector. This is due mostly to the decrease in the rate of growth for business activity, new orders and employment, as well as ongoing faster delivery times. The majority of respondents are cautiously optimistic about business conditions and the overall economy.” | |||
* The Business Activity Index registered 57.1 percent, a 2.1-percentage point decrease compared to the reading of 59.2 percent in June. | |||
* The New Orders Index expanded in July, the figure of 55 percent is 0.5 percentage point lower than the June reading of 55.5 percent. | |||
* The Supplier Deliveries Index registered 48.1 percent, 0.5 percentage point higher than the 47.6 percent recorded in June. | |||
* The Prices Index was up 2.7 percentage points in July, to 56.8 percent | |||
* The Backlog of Orders Index registered 52.1 percent, an 8.2-percentage point increase compared to the June figure of 43.9. | |||
=== June 2023 === | === June 2023 === | ||