*Number of months moving in current direction. Manufacturing ISM® Report On Business® data is seasonally adjusted for the New
Orders, Production, Employment and Supplier Deliveries Indexes.
MANUFACTURING JULY 2017 Analysis by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® Manufacturing Business Survey Committee.
MANUFACTURING AT A GLANCE
Index Jul Index Jun Index %Point Change Direction Rateof Change Trend* (months)
PMI® 56.3 57.8 - 1. 5 Growing Slower 11
New Orders 60.4 63.5 - 3. 1 Growing Slower 11
Production 60.6 62.4 - 1. 8 Growing Slower 11
Employment 55.2 57.2 - 2.0 Growing Slower 10
Supplier Deliveries 55.4 57.0 - 1. 6 Slowing Slower 15
Inventories 50.0 49.0 + 1.0 Unchanged From Contracting 1
Customers’ Inventories 49.0 50.5 - 1. 5 Too Low From Too High 1
Prices 62.0 55.0 + 7.0 Increasing Faster 17
Backlog of Orders 55.0 57.0 - 2.0 Growing Slower 6
New Export Orders 57.5 59.5 - 2.0 Growing Slower 17
Imports 56.0 54.0 + 2.0 Growing Faster 6
OVERALL ECONOMY Growing Slower 98
Manufacturing Sector Growing Slower 11
43.3% = Overall Economy
50% = Manufacturing Economy
2017 2016 2015
Commodities Up in Price: Aluminum ( 9); Caustic Soda; Corn; Corrugate ( 10); Corrugated Boxes ( 5); Electric Components ( 2); LCD Displays;
Lumber; Memory — Computer; Polypropylene; Precious Metals; Steel — Cold Rolled; Steel — Hot Rolled* ( 8); Titanium Dioxide; and Wheat.
Commodities Down in Price: Milk Products; and Steel — Hot Rolled* ( 2).
Commodities in Short Supply: Capacitors; Electric Components ( 2); Electronic Components ( 5); Integrated Circuits; Mechanical Components;
Memory — Computer; Resistors; and Titanium Dioxide.
Manufacturing expanded in July as the PMI® registered 56.3 percent, a decrease
of 1. 5 percentage points from the June reading of 57.8 percent. A PMI® above
43.3 percent, over a period of time, generally indicates an expansion of the overall
economy. Therefore, the July PMI® indicates growth for the 98th consecutive month
in the overall economy and the 11th straight month of growth in the manufacturing
Economic activity in the manufacturing sector expanded in July, and the overall economy grew for the 98th consecutive month, say the nation’s supply executives in the latest
Manufacturing ISM® Report On Business®.
The July PMI® registered 56.3
percent. The New Orders Index
registered 60.4 percent, a decrease
of 3. 1 percentage points from the
June reading of 63.5 percent. The
Production Index registered 60.6 percent, a 1. 8 percentage
point decrease compared to the June reading of 62.4 percent.
The Employment Index registered 55.2 percent, a decrease of
2 percentage points from the June reading of 57.2 percent. The
Supplier Deliveries Index registered 55.4 percent, a 1. 6 percentage
point decrease from the June reading of 57 percent. Comments
from the panel generally reflect expanding business conditions,
with new orders, production, employment, backlog and exports
all growing in July compared to June, as well as supplier deliveries
slowing (improving) and inventories unchanged during the period.
Of the 18 manufacturing industries,
15 reported growth in July in the
following order: Plastics & Rubber
Products; Electrical Equipment,
Appliances & Components; Wood
Products; Fabricated Metal Products;
Machinery; Chemical Products; Paper Products; Food, Beverage
& Tobacco Products; Printing & Related Support Activities;
Computer & Electronic Products; Nonmetallic Mineral Products;
Furniture & Related Products; Miscellaneous Manufacturing‡;
Primary Metals; and Transportation Equipment.
‡Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry,
Note: The number of consecutive months the commodity is listed is indicated after each item. *Reported as both up and down in price.