Courtesy of Mish.
Inquiring minds are looking into the July 2012 Manufacturing ISM Report On Business®
“The PMI registered 49.8 percent, an increase of 0.1 percentage point from June’s reading of 49.7 percent, indicating contraction in the manufacturing sector for the second consecutive month, following 34 consecutive months of expansion. The New Orders Index registered 48 percent, an increase of 0.2 percentage point from June and indicating contraction in new orders for the second consecutive month, but at a slightly slower rate. Both the Production Index and the Employment Index remained in growth territory, registering 51.3 percent and 52 percent, respectively. The Prices Index for raw materials registered 39.5 percent, an increase of 2.5 percentage points from the June reading of 37 percent, indicating lower prices on average for the third consecutive month.
| MANUFACTURING AT A GLANCE JULY 2012 |
||||||
|---|---|---|---|---|---|---|
|
Index |
Series Index Jul |
Series Index Jun |
Percentage Point Change |
Direction |
Rate of Change |
Trend* (Months) |
| PMI | 49.8 | 49.7 | +0.1 | Contracting | Slower | 2 |
| New Orders | 48.0 | 47.8 | +0.2 | Contracting | Slower | 2 |
| Production | 51.3 | 51.0 | +0.3 | Growing | Faster | 38 |
| Employment | 52.0 | 56.6 | -4.6 | Growing | Slower | 34 |
| Supplier Deliveries | 48.7 | 48.9 | -0.2 | Faster | Faster | 6 |
| Inventories | 49.0 | 44.0 | +5.0 | Contracting | Slower | 4 |
| Customers’ Inventories | 49.5 | 48.5 | +1.0 | Too Low | Slower | 8 |
| Prices | 39.5 | 37.0 | +2.5 | Decreasing | Slower | 3 |
| Backlog of Orders | 43.0 | 44.5 | -1.5 | Contracting | Faster | 4 |
| Exports | 46.5 | 47.5 | -1.0 | Contracting | Faster | 2 |
| Imports | 50.5 | 53.5 | -3.0 | Growing | Slower | 8 |
| OVERALL ECONOMY | Growing | Faster | 38 | |||
| Manufacturing Sector | Contracting | Slower | 2 | |||
Dismal Manufacturing Numbers Worldwide
Reuters reports Global factories struggle as growth fears rise
U.S. and euro zone factory activity slumped again in July while Chinese manufacturing hit an eight-month low, surveys showed on Wednesday, as economies worldwide showed signs of slowing.
Economic malaise was worst in the 17-country euro zone, where output plummeted and the manufacturing sector contracted for an 11th straight month as a downturn that began in smaller countries continued to spread into core euro area economies….
