The manufacturing sector expanded for the 14th straight month in July, according to the newest Report on Business from the Institute for Supply Management, released today. ISM’s Purchasing Manager’s Index registered 57.1, a 1.8% increase over June and representing a 12-month high.
The PMI measures business sentiment among manufacturing supply managers nationwide. A reading above 50 indicates expansion in the manufacturing sector; a reading below 50 indicates contraction.
ISM reported increases in new orders, production, and employment during the month. Inventories of raw materials contracted in July following five consecutive months of growth. Survey respondents also indicated that prices are increasing and that imports and exports continue to grow.
“Comments from the panel are generally positive, while some indicate concern over global geopolitical situations,” according to Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee.